The validity of value at risk (VaR) as a measure of financial risk before, during and after Covid(19) Study of An application on the commercial banking sector listed on the Iraqi Stock Exchange

Abstract

The research aims to measure financial risk by estimating the value at risk (VaR) during the Covid (19) period, and based on the daily closing prices of the commercial banking sector listed in the Iraq Stock Exchange for the period (2018-2023), and to find the value at risk (VaR) Two of the most common methods were used, namely (historical simulation and variance - covariance). It was noted that there is a direct impact of the Covid (19) pandemic on financial risk through the direct impact of Covid (19) on the value exposed to risk (VaR) of the commercial banking sector listed in the market. Iraq Securities, and that the recovery of the commercial banking sector after the Covid (19) pandemic was slow, which was reflected in the rise in closing prices in the commercial banking sector, and the failure of closing prices daily  to back  to their previous levels that they were before the Covid (19) pandemic, and the sector must Iraqi commercial banks work more efficiently during crises so that commercial bank indicators are not affected by crises.