When launching a new product in a volatile market, we use a dynamic risk calibration approach to adjust risk tolerance. We start by segmenting risks into short-term and long-term categories, aligning tolerance levels accordingly—be more conservative in the short term but flexible enough for long-term market shifts. We then monitor real-time market data and consumer sentiment, adjusting product positioning or pricing as needed. We implement phased rollouts to limit initial exposure, allowing us to assess and recalibrate based on early market reactions. We set clear thresholds for revisiting our risk tolerance, ensuring agility without compromising strategic goals.

o adjust risk tolerance when launching in a volatile market, consider using adaptive risk thresholds. This approach involves setting flexible risk limits that can be adjusted as market conditions evolve, ensuring the organisation remains agile. It’s valuable because it allows for proactive decision-making, balancing risk and opportunity as the market fluctuates. In risk management, adaptive thresholds provide the flexibility to take calculated risks when conditions improve while tightening controls during high volatility. This approach ensures that your risk strategy remains dynamic, enabling better alignment with the market's unpredictability while maintaining the potential for growth.