Hi Yogita, good to hear! Apart from the usual tools and techniques for market risk management, I think the real value to hedgefunds would be to demonstrate a key understanding of their trading strategies and associated risk factors e.g. outright/RV type in rates/inflation let's say. Based on that, I'll perhaps then look at the historical data of those risk factors and relevant macro events that explain these movements and how these strategies may perform therein - and then suggest how to set limits and what type of macro events to look out for that may upset these strategies

@Dean Pereira Agreed! I'll also check the positions/sensitivities first because most of the time, the latest scenario is "just another day", meaning it's more likely VaR changes are driven by position rather than scenario changes. Even if yesterday's scenario was an extreme move, it still may not move the number significantly since VaR is a cut-off point on the tail and doesn't really reflect how long the tail is. ES does though so would show up more obviously there. OR could really be an annoying Data Quality (DQ issue) like missing scenarios or prices! 🤨

@Dean Pereira Agree would have some AI-driven fear component in there and that the ROI on the massive AI spending has yielded not as much in productivity gains in the real economy. Gonna take people some time to figure out how to actually integrate AI properly and safely into workflows. And yes, like dotcom bubble, but with much more capex. I also read recently that some AI providers have changed their pricing model to be more consumption based - meaning user bills massively shoots up and ends up being much more expensive than hiring people. An interesting development.

@Maggie Liao Nice! I remember it took me quite a while to understand forwards when first studying back in undergrad, esp. the "cost of carry" model to determine the fair price of the contract. Derivatives are fun indeed :) Gets even more interesting when you try to implement them in Excel or Python etc.