Gartner Research

Innovation Investment Risk Assessment Tools

Published: 08 February 2019

ID: G00707133

Analyst(s): Research and Development Research Team


Nonfinancial firms have modified downside risk metrics long used by financial institutions by refocusing the target variable from financial asset value to cash flows. We identify two risk-based assessment tools to help R&D leaders provide strategic input into enterprisewide risk management decisions.

Table Of Contents

More Detail

The Difference Between VaR and CFaR

Table 1: Comparison of VaR and CFaR

Calculation Methods

Table 2: VaR Estimation Methods


©2022 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.