Value At Risk (VaR) is a financial metric used to assess the potential loss in value of an investment or portfolio over a specified time period, given normal market conditions. It provides a statistical estimate of the maximum expected loss, helping investors understand the level of risk associated with their assets. VaR is commonly expressed in monetary terms or as a percentage of the total investment. For example, a VaR of $1 million at a 95% confidence level means there is a 95% chance that the investment will not lose more than $1 million over the specified time frame.