Time at Risk == Value at Risk
(if we replace value by time)
E.g. An insurance company’s 90% TaR is 3 year for liquidity risk
– That means that for 3 years the insurer under the current financial structure would be 90% safe
Time at Risk (TaR for short): is the maximum period of time that an adverse event would not occur. We calculate it as follows:
The units are cases/person-year