sdverdien

sdverdien is a term used in risk assessment and decision analysis to describe a dispersion measure for the value of a variable or portfolio across different scenarios. In common usage, sdverdien refers to the spread of projected values, typically calculated as the standard deviation, and may be expressed relative to the mean to yield a normalized indicator of variability.

The term is relatively new and appears in academic papers and industry reports since the early 2020s. It is not tied to a single formal standard, and exact calculations vary by context. The name combines standard deviation (sd) with verdien, a word meaning value in several northern European languages, to signal a value-centered variability metric.

sdverdien is used to compare the risk of alternative strategies, projects, or portfolios by showing how much the expected value can deviate under different conditions. Lower values indicate more stable outcomes, while higher values indicate greater sensitivity. It is often presented alongside other metrics such as expected value, value at risk, and the coefficient of variation.

Critics caution that sdverdien depends on the choice of scenarios and modeling assumptions; without clear definitions it can be misleading. It is most informative when used as part of a broader risk assessment framework. Related concepts include standard deviation, coefficient of variation, and value at risk.