Regulations require daily VaR calculation to ensure continuous and accurate risk assessment. This allows managers to react quickly to market changes.

Regulations require a minimum confidence interval of 99% for VaR calculation, although a minimum of 95% is also mentioned. This means that VaR must cover 99% of possible losses, ensuring a robust risk assessment.

Under Article 321-76 of the AMF General Regulation, the commitment approach imposes a limit of 100% of the portfolio's net value for standard UCITS. This limit is increased to 200% for leveraged general-purpose funds (FIVG).

Absolute VaR compares the potential loss against a fixed threshold generally set at 20% of net assets. This threshold helps assess whether potential losses are acceptable relative to the portfolio size.

In accordance with ESMA guidelines and AMF Position DOC-2020-08, stress tests are mandatory and must be conducted at least monthly. They aim to simulate extreme scenarios not captured by VaR, such as interest rate shocks or correlation breakdowns, and must cover all significant risks in the portfolio.

Stress tests are made mandatory by ESMA guidelines and AMF Position DOC-2020-08. They complement risk assessment by simulating extreme scenarios not captured by VaR, such as liquidity crises and correlation breakdowns.

Market risk is defined by Article 321-76 of the AMF General Regulation as the risk of loss resulting from a fluctuation in the market value of positions attributable to changes in interest rates, exchange rates, equity prices, or commodity prices.

Regulatory parameters include the confidence interval, time horizon, and observation period. Extreme scenarios include interest rate shocks, sharp equity price movements, and correlation breakdowns.