👉 A Risk Fluid is a concept from financial risk management that describes the sensitivity of a portfolio's value to changes in various risk factors, such as interest rates, exchange rates, commodity prices, or credit spreads. It quantifies how much a portfolio's value could change in response to small shifts in these underlying risks. Risk Fluid is often used to assess and manage the potential volatility of a portfolio, helping investors understand and mitigate risks associated with specific risk factors. By calculating the Risk Fluid, financial professionals can better gauge the portfolio's exposure and make informed decisions to adjust their strategies in response to changing market conditions.
