A financial analyst is tasked with calculating the Value at Risk (VaR) for a portfolio of domestic and international equities. After simulating the returns of the portfolio using a historical approach over a one-year period, the analyst identifies that the maximum loss observed was $150,000 at a 95% confidence level.

However, the analyst is aware that the nature of the portfolio's return distributions may not follow a normal distribution, which could lead to an underestimation of risk. Given this scenario, the analyst must decide the implications of the calculated VaR in terms of risk management and portfolio strategy moving forward.

Which of the following statements most accurately reflects the situation based on the calculated VaR?