All of a firm's risks are considered together to estimate the probability that the market value of liabilities will exceed assets by various amounts over a one-year period. This probability measure is called

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Value at risk is the measure that estimates the loss threshold for a firm’s net market value over a specified horizon at a given confidence level, incorporating all sources of risk. In this context, it describes the probability distribution of how much the market value of liabilities could exceed assets over one year for different loss amounts. It’s a practical way to express potential losses within a year at chosen confidence levels, rather than a single expected loss. Other terms describe different ideas: credit risk exposure focuses on default risk, an economic solvency measure relates to capital adequacy, and market value at expiration is not the standard horizon-based loss-probability metric.