- Value at Risk (VaR) is a widely used risk management tool that quantifies the maximum potential loss over a specified time frame at a certain confidence level. However, it's essential to consider its limitations and the potential for unexpected events, often referred to as "black swan" events.
3. **In what ways have financial regulations evolved in response to historical financial crises to address systemic risk, and what impact do these regulations have on market dynamics and financial institutions?
