Risk factor
- Japanese
- リスクファクター
- Last reviewed
- September 26, 2026
This is a draft, shown for review before publication.
A risk factor is a market variable, such as an interest rate, an exchange rate or a stock price, whose movement changes the value of a position. Sensitivities and VaR derive the change in a position's market value from the movements of risk factors.
Related terms
Explained in detail
Pages that use this term
- Present Value and Discount Factors
- Probability and Statistics Basics
- Market Size Statistics (BIS Surveys)
- Overview of Exotic Rate Products
- What Are Structured Products?
- PRDC Notes
- Digital Coupon Notes
- ISDA SIMM: The Standard Model for Initial Margin
- Monte Carlo Simulation
- Managing Gamma and Vega
- Value at Risk (VaR)
- Expected Shortfall
- Stress Testing
- Backtesting
- Wrong-Way Risk
- P&L Attribution
- Daily Risk Management Operations
- The Fundamental Review of the Trading Book (FRTB)
- The Standardized Approach for Counterparty Credit Risk (SA-CCR)
- The CVA Risk Capital Charge