# Tail Risk

*Risk & Portfolio — Finicade finance glossary*

The risk of rare, extreme losses out in the far tail of the distribution — the crashes that ordinary models treat as almost impossible but that keep happening. What stress tests and fat-tail models chase.

**Also known as:** tail-quantiles, tail-average

**Related terms:** [Fat Tails](https://finicade.com/glossary/fat-tails), [Expected Shortfall (CVaR)](https://finicade.com/glossary/expected-shortfall), [Stress Testing](https://finicade.com/glossary/stress-testing)

**Taught in:** Math Masters — The Normal & Lognormal Distributions

Source: https://finicade.com/glossary/tail-risk