# Expected Shortfall (CVaR)

*Risk & Portfolio — Finicade finance glossary*

The average loss in the bad cases beyond the Value-at-Risk cutoff — it answers 'if things go worse than VaR, how bad on average?'. Because it looks into the tail, regulators increasingly prefer it to VaR.

**Also known as:** cvar, conditional value at risk, expected tail loss

**Related terms:** [Value at Risk (VaR)](https://finicade.com/glossary/value-at-risk), [Stress Testing](https://finicade.com/glossary/stress-testing), [Volatility](https://finicade.com/glossary/volatility)

**Taught in:** Risk Arena — Expected Shortfall: Beyond VaR

Source: https://finicade.com/glossary/expected-shortfall