Market Risk
Directional exposure, Greeks, volatility, basis and stress sensitivity.
Risk & Governance
Risk architecture for leveraged and fast-moving markets.
Avermont’s risk framework connects market risk, liquidity, counterparty exposure, collateral, operations, technology and governance so that decisions can be made with clear boundaries and escalation authority.
Risk Architecture
Where risk accumulates across the business.
Digital-asset markets concentrate several types of risk in the same transaction. The framework is therefore designed around interaction, not isolated checklists.
Liquidity Risk
Depth, spread, market impact, liquidation horizon and stressed liquidity.
Counterparty Risk
Exposure, concentration, credit quality, settlement structure and limits.
Collateral & Margin
Margin sufficiency, collateral quality, concentration and liquidity buffers.
Operational Risk
Process controls, reconciliations, approvals, exceptions and business continuity.
Technology Risk
Availability, access, change management, monitoring and security controls.
Product Risk
Payoff behavior, lifecycle events, model assumptions and operational complexity.
Regulatory & Conduct
Applicable requirements, disclosures, communications and governance standards.
Governance
Who can approve, escalate or stop activity should be clear before stress arrives.
A functioning governance model defines who can approve risk, who can escalate it and who has authority to stop or reduce activity when thresholds are breached.
Board / Oversight
Sets strategic expectations and receives material risk reporting.
Executive Management
Owns business decisions, resource allocation and cross-functional accountability.
Risk & Control Functions
Define limits, challenge assumptions, monitor exposures and escalate exceptions.
Business & Product Owners
Operate within approved boundaries and own first-line controls.
Independent Review
Tests whether controls, documentation and operating practices remain effective.
Control Cycle
Controls evolve with positions, products and market conditions.
The strongest frameworks connect pre-trade limits, live monitoring and post-trade review into a single feedback loop.
Define
Risk appetite, limits, approved products, counterparties and escalation thresholds.
Measure
Exposure, Greeks, liquidity, collateral, concentrations and scenario outcomes.
Monitor
Track live conditions and operational exceptions against defined thresholds.
Escalate
Move issues to the right authority before they become larger problems.
Learn
Use incidents, near misses and market events to improve controls and policy.