Crypto & Digital Asset Risk

Crypto risk is operational risk wearing unfamiliar clothing. The losses that actually destroy firms in this sector are rarely a bad directional call. They are lost keys, a custodian that fails, an exchange that halts withdrawals, or a regulator that arrives before the compliance hire does.

The coverage here reflects that: private key backup and recovery procedures, key man risk planning, what happens to customer assets when an exchange shuts down, recovery objectives for exchange infrastructure, and the insurance options that genuinely exist for digital asset custody. On the regulatory side there is MiCA, DORA and the NYDFS BitLicense, plus a review of the largest exchange breaches and what went wrong in each.

Traders looking for position level discipline should start with the crypto trading risk framework in this section, then read across to operational risk, business continuity management and financial risk.