the role of backtesting of VaR models in portfolio management

Discuss, in two pages or less, the role of backtesting of VaR models in portfolio management.
A useful reference for backtesting is Lucas, A., (2001), ?Evaluating the Basle Guidelines for Backtesting Banks? Internal Risk Management Models,? Journal of Money, Credit and Banking, Vol. 33, No. 3. In particular, one should read p826-831 and the concluding remarks.

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