Conditional Value at Risk (CVaR) is a risk assessment measure used in finance to evaluate the potential loss in an investment portfolio. It focuses on the average loss that occurs beyond a specified Value at Risk (VaR) threshold, providing insight into the tail risk of an investment. This helps investors understand the worst-case scenarios and prepare for extreme market conditions. CVaR is particularly useful for risk management as it captures the severity of losses in the tail of the distribution. By analyzing the potential losses that exceed the VaR, investors can make more informed decisions and implement strategies to mitigate risks associated with their portfolios.