Risk metric

In the context of risk measurement, a risk metric is the concept quantified by a risk measure. When choosing a risk metric, an agent is picking an aspect of perceived risk to investigate, such as volatility or probability of default. In the context of risk measurement, a risk metric is the concept quantified by a risk measure. When choosing a risk metric, an agent is picking an aspect of perceived risk to investigate, such as volatility or probability of default. In a general sense, a measure is a procedure for quantifying something. A metric is that which is being quantified. In other words, the method or formula to calculate a risk metric is called a risk measure.