[Verse 1] In boardrooms where the numbers flow Risk governance sets the tone Framework built on solid ground Budget limits tightly bound Monitor the pulse each day Keep the danger wolves at bay [Chorus] VaR and CVaR, measure what could fall Historical simulation shows it all Monte Carlo rolling dice of chance Expected shortfall in advance Risk is lurking everywhere But we've got tools beyond compare [Verse 2] Market trembles, prices swing Parametric models sing Stress testing breaks the normal curve Scenario planning what we'll serve When black swans come to roost Our defenses aren't reduced [Chorus] VaR and CVaR, measure what could fall Historical simulation shows it all Monte Carlo rolling dice of chance Expected shortfall in advance Risk is lurking everywhere But we've got tools beyond compare [Verse 3] Credit portfolios can crack Default clustering attacks Asset liquidity runs thin Funding sources wearing thin Operations break the chain Human error brings the pain [Bridge] Tail risk hiding in the wings Fat distributions, heavy things Systematic shakes the whole machine Idiosyncratic, factors seen Decompose the beast apart Science mixed with banking art [Verse 4] Derivatives overlay Hedge the risks that come our way Swaps and options, futures too Portfolio protection's due Factor models tell the tale Where our risk controls might fail [Chorus] VaR and CVaR, measure what could fall Historical simulation shows it all Monte Carlo rolling dice of chance Expected shortfall in advance Risk is lurking everywhere But we've got tools beyond compare [Outro] Risk management never sleeps Guardian of what we keep From the framework to the floor Always watching, keeping score
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