Risk & Governance
Risk understood in layers, decisions made under policy
Sound outcomes depend less on selecting instruments than on understanding dependencies and deciding under a stated policy. Our risk and governance work makes both explicit and reviewable.
Risk framework
Six layers, examined in sequence
Each layer is assessed on its own terms and then in combination, since risks rarely present themselves one at a time.
Market
Price, rate, currency and volatility exposure; sensitivity of the position to changing regimes rather than to single forecasts.
- Directional exposure
- Rate and inflation sensitivity
- Currency mismatch
- Drawdown scenarios
Liquidity
The ability to realise value when needed, at an acceptable cost, including under stressed market and banking conditions.
- Liquidity laddering
- Illiquidity budget
- Settlement and on/off-ramp reliability
- Cash buffer adequacy
Counterparty
Dependency on institutions and platforms: banks, brokers, custodians, exchanges, issuers and administrators.
- Provider concentration
- Segregation of assets
- Disclosure quality
- Substitutability planning
Operational
Process, control and human factors — the most common practical source of loss, particularly in digital assets.
- Access and authorisation control
- Dual approval and signing policy
- Key management and recovery
- Incident response
Regulatory
Exposure to legal and regulatory change across the jurisdictions relevant to the client, entities and assets held.
- Jurisdictional mapping
- Reporting obligations
- Eligibility and access changes
- Documentation adequacy
Governance
The decision architecture around the position: who decides, under what policy, with what evidence and what review.
- Investment policy statement
- Decision and approval protocols
- Reporting cadence
- Periodic review cycle
The framework is an analytical tool for structuring discussion. It does not eliminate risk, predict outcomes or guarantee any result.
Governance practice
From identification to periodic review
Governance is what keeps a framework alive after the first review is filed away.
Risk Identification
Scenario Analysis
Investment-Policy Guidance
Decision Protocols
Reporting Structures
Periodic Review
Concentration and custody
Where losses actually originate
In practice, severe outcomes are rarely caused by a single market move. They emerge from concentration, dependency and procedural failure.
- Concentration risk: a single position, sector, currency, entity or provider on which too much depends.
- Liquidity risk: assets that cannot be realised when required, or only at a materially impaired value.
- Counterparty risk: insolvency, misappropriation or restriction imposed by an institution or platform.
- Operational risk: authorisation gaps, undocumented procedures, single points of human failure.
- Custody risk: unclear ownership, inadequate segregation, weak key management or absent recovery planning.
Deliverables
Boundaries