Each of these approaches have strength and weaknesses

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Reference no: EM131933651

A significant limitations of market risk disclosures made under FRR No. 48 (1997) is that they need not be comparable across firms, exposures for a given firms, or time, for four reasons. Firms may disclose their exposure to each type of market risk using Tabular Formal Approach, Sensitivity Approach, and Value-at Risk Approach. Each of these approaches have strength and weaknesses. Discuss the strength and weakness of these approaches.

Reference no: EM131933651

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