Feasibility Research Of VaR In China's Money Market Risk Management

China's money market is a development emerging market. With the development ofmoney market the market risk will enlarge gradually. The increase of market risk set the newrequest to the risk management. Value at Risk (VaR) technique is a new risk managementmethod that has been developed in 1990's. It has become the standard measure of market riskemployed by financial institutions and their regulators. This article studies the Feasibility ofVaR in China's Money Market Risk Management. This article first compared the VaRmethod with the tradition money market risk management method, next introduced the VaRmodel system and the model inspection procedure, then researched the necessity ofintroducing the VaR method to our country money market risk management, the question andthe corresponding countermeasure which existed in the utilization of the VaR method, finallyconfirmed the serviceability of the VaR method in our country money market riskmanagement by the analysis of our country stock index.