What does VAR mean in 2010?

A calmer year in in 2009 saw value-at-risk figures drop steadily at almost every major bank, but debate about exactly what the figures reveal – and how they are used – continues.

The numbers are generally seen as a proxy for risk appetite: the higher the VAR, the more aggressive the trading strategy. Post-crisis, that reading no longer seems watertight. As markets froze in 2007 and 2008, losses at many institutions burst through VAR limits on a more regular basis than had been thought possible