Forward-Looking Risk Analysis Purpose Estimate potential future losses and risk exposures using parametric models, simulation, and scenario analysis. This skill covers parametric and Monte Carlo Value-at-Risk, Conditional VaR (Expected Shortfall), component and marginal VaR, stress testing, scenario analysis, and factor-based risk decomposition. These tools are essential for portfolio risk management and regulatory capital calculations. Layer 1b — Forward-Looking Risk Direction Prospective When to Use - Estimating potential future losses for a portfolio or position - Computing parametric VaR…