In the context of risk measurement, a risk metric is the concept quantified by a risk measure. When choosing a risk metric, an agent is picking an aspect of perceived risk to investigate, such as volatility or probability of default.
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Risk measure and risk metric
In a general sense, a measure is a procedure for quantifying something. A metric is that which is being quantified. In other words, the method or formula to calculate a risk metric is called a risk measure.
For example, in finance, the volatility of a stock might be calculated in any one of the three following ways:
These are three distinct risk measures. Each could be used to measure the single risk metric volatility.
Examples
References
Risk metric Wikipedia(Text) CC BY-SA