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Valuation risk is the financial risk that an asset is overvalued and is worth less than expected when it matures or is sold. Factors contributing to valuation risk can include incomplete data, market instability, financial modeling uncertainties and poor data analysis by the people responsible for determining the value of the asset. This risk can be a concern for investors, lenders, financial regulators and other people involved in the financial markets. Overvalued assets can create losses for their owners and lead to reputational risks; potentially impacting credit ratings, funding costs and the management structures of financial institutions. Valuation risks concern each stage of the transaction processing and investment management chain. From front office, to back office, distribution, asset management, private wealth and advisory services. This is particularly true for assets that have low liquidity and are not easily tradable in public exchanges. Moreover, issues associated with valuation risks go beyond the firm itself. With straight through processing and algorithmic trading, data and valuations must remain synchronized among the participants of the trade processing chain. The executing venue, prime brokers, custodian banks, fund administrators, transfer agents and audit share files electronically and try to automate such processes, raising potential risks related to data management and valuations. To mitigate this risk it is important to provide transparency and ensure the integrity and consistency of the data, models and processes used to process and report calculations within valuations for all participants. ==Background== The growth and diversity made in financial engineering has led to highly creative and innovative strategies where new products and new structures are offered at very fast pace on the market. As most innovations are first proposed on over-the-counter (OTC) markets, they tend to rely on financial models, sometimes combining several models together. Financial models typically build on underlying assumptions and require calibration to a breadth of scenarios, business conditions and variations of the assumptions increasing the model risk. The shock wave which affected the credit and capital markets following the burst of the US sub-prime mortgage crisis in late 2007, tested most underlying assumptions and had sweeping effects on a number of models that would unlikely be calibrated for extreme market conditions, or tail risk. This led to an emergency call for transparency and assessments of exposure from the financial institutions’ clients, shareholders and managers, echoed by the regulators. In this process, it appears that market exposure and credit exposure intricately mix into a single notion of valuation risk. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Valuation risk」の詳細全文を読む スポンサード リンク
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