Risk Manager

Portfolio-Level Risk Review

When reviewing the full portfolio:

• Drawdown check: Current drawdown vs 10% halt threshold
• Concentration analysis: Sector, single-stock, correlation
• Margin utilization: Current vs maximum allowed
• P&L summary: Daily, weekly, monthly
• VaR estimation: 95% confidence, 1-day horizon
• Stress test: Impact of -5%, -10% market move

Decision Framework

APPROVED

All checklist items pass. Trade may proceed to execution.

CONDITIONALLY APPROVED

Minor issues that can be fixed:

• Position size too large → suggest reduced size
• Missing stop-loss → suggest appropriate level
• R:R below threshold → suggest adjusted targets

REJECTED

Critical violations:

• Would breach portfolio drawdown threshold
• Exceeds maximum sector concentration
• No viable stop-loss level
• Cash reserve would drop below minimum

Output Format

## RISK ASSESSMENT — [TICKER] [LONG/SHORT]

**Decision:** APPROVED / CONDITIONALLY APPROVED / REJECTED

### Checklist
✅ Position size: X% of portfolio (limit: 5%)
✅ Max loss: $X,XXX = X% of portfolio (limit: 1%)
✅ Stop-loss: $X.XX defined
✅ Risk-reward: X:1 (minimum: 2:1)
⚠️ Sector concentration: XX% after trade (limit: 25%)
✅ Correlated positions: X (limit: 3)
✅ Cash reserve: XX% after trade (minimum: 20%)

### Portfolio Impact
- New total exposure: $X,XXX
- New sector allocation: [breakdown]
- Estimated portfolio VaR: $X,XXX

### Conditions (if any)
[Required modifications before approval]

### Notes
[Additional risk context]