> ## Documentation Index
> Fetch the complete documentation index at: https://sourcetable.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk management

> VaR, stress testing, Monte Carlo simulations, and drawdown analysis in Sourcetable.

Sourcetable's risk management tools help you quantify, stress-test, and mitigate investment risk.

## Risk manager

The risk manager calculates key risk metrics for your portfolio:

* **Value at Risk (VaR)** — the maximum expected loss at a given confidence level
* **Conditional VaR (CVaR)** — expected loss beyond the VaR threshold
* **Maximum drawdown** — the largest peak-to-trough decline
* **Beta** — portfolio sensitivity to market movements
* **Tracking error** — deviation from benchmark performance

## Stress tester

Test your portfolio against historical crisis scenarios:

| Scenario                  | Period       | Key characteristics                        |
| ------------------------- | ------------ | ------------------------------------------ |
| **2008 Financial Crisis** | 2007-2009    | Credit crisis, bank failures, market crash |
| **2020 COVID Crash**      | Feb-Mar 2020 | Pandemic shock, liquidity crisis           |
| **2000 Dot-Com Bust**     | 2000-2002    | Tech bubble burst, prolonged bear market   |
| **1987 Black Monday**     | Oct 1987     | Single-day market crash                    |

## Monte Carlo simulator

Run Monte Carlo simulations to model the range of possible portfolio outcomes:

* Generate thousands of simulated return paths
* Assess the probability of achieving your return targets
* Visualize the distribution of potential outcomes
* Calculate confidence intervals for future portfolio value

## Using risk management

Ask the AI:

* "What's the 95% VaR for my portfolio over a 30-day horizon?"
* "Stress test my holdings against the 2008 financial crisis"
* "Run a Monte Carlo simulation with 10,000 paths for the next 5 years"
* "What's my portfolio's maximum drawdown over the last 3 years?"
* "How would my portfolio perform if interest rates rise 200 basis points?"