RiskMetrics

RiskMetrics is a term that originated with a company of the same name, RiskMetrics Group, which was a financial analytics firm founded in 1999. The company's primary contribution was the development and popularization of risk management tools and methodologies, particularly for financial institutions. RiskMetrics Group was known for its proprietary risk management software and data services, which helped clients measure, manage, and report on market risk, credit risk, and operational risk.

The methodologies developed by RiskMetrics Group, often referred to collectively as "RiskMetrics," became influential in the financial industry. A key concept associated with RiskMetrics is Value at Risk (VaR), a statistical measure that estimates the maximum potential loss on a portfolio over a specified time horizon at a given confidence level. While the company itself no longer exists in its original form, having been acquired, the term "RiskMetrics" continues to be used, often generically, to refer to the suite of quantitative risk management techniques and technologies that emerged from its work. These tools and approaches are fundamental to modern financial risk management practices.