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, allowing investors to understand the level of risk associated with their assets. VaR is commonly expressed in monetary terms and is often calculated for different confidence levels, such as 95% or 99%. This means that, for example, a 95% VaR of $1 million indicates that there is a 95% chance the investment will not lose more than $1 million over the specified time frame.