ABSTRACT
In recent years, with the development of economic globalization and financial liberalization, the increased volatility of financial market and the more and more complicated risk structure of financial tools induce a crucial problem, how to regulate financial risk efficiently, to be figured out. Risk measure is the key factor for risk management. One primary risk measure approach, VaR (Value at Risk) is to estimate the possible or potential loss of given finance products and portfolio at futures price volatility. It concretizes the risk of financial assets a simple number that matches income, and hence makes it convenient to measure the risk level of financial markets.
