Editing Value at risk (section)

=== In governance ===
VaR can also be applied to [[financial governance|governance]] of endowments, trusts, and pension plans. Essentially, trustees adopt portfolio Values-at-Risk metrics for the entire pooled account and the diversified parts individually managed. Instead of probability estimates they simply define maximum levels of acceptable loss for each. Doing so provides an easy metric for oversight and adds accountability as managers are then directed to manage, but with the additional constraint to avoid losses within a defined risk parameter. VaR utilized in this manner adds relevance as well as an easy way to monitor risk measurement control far more intuitive than Standard Deviation of Return. Use of VaR in this context, as well as a worthwhile critique on board governance practices as it relates to investment management oversight in general can be found in ''Best Practices in Governance.''<ref>{{Citation|title=Best Practices in Governance|author=Lawrence York|year=2009}}</ref>