Lesson 2.5 - Risk Tool and Control Awareness

Risk tools help the Dealing Room monitor exposure, account conditions, risk status and approved temporary controls. The goal is not to teach Dealers to design risk systems, but to make sure risk signals are read correctly.

Dealer View

Risk signal	What it means	Dealer action
Exposure	Company market risk by symbol, direction or group	Monitor trend, concentration and risk-status usage
Risk signal	Exposure, execution quality, concentration or event-window change	Verify the signal and escalate when the change is material
Account condition	Group, leverage, margin, trading permission or program rule	Verify against approved setup before concluding
Temporary control	Event, close, rollover or incident-related control	Confirm approval, scope, start/end time and assigned owner
Alert	System or risk signal requiring attention	Validate whether it is true, stale, duplicate or material

What Dealers Should Avoid

• Treating every alert as an incident.
• Ignoring an alert because "it happened before."
• Changing risk settings without approval.
• Explaining client outcome before verifying rule, price and execution evidence.

Evidence for Escalation

Symbol / account / group:
Observed risk signal:
Current value:
Threshold or rule:
Time observed:
Related event or market condition:
Evidence source:
Action requested:
Approver:

Risk tools support judgment; they do not replace responsibility, evidence or approval.

Practical Training

Scenario

Before a major news event, someone suggests temporarily changing the trading conditions for one client group.

What to check

Current approved setup, approved temporary-control record, affected scope, start and end conditions, approval evidence and assigned owner.

Common mistake

Changing a setting without approval or relying on an informal chat message as the only record.

Correct handling

The Dealer verifies the current and approved status, preserves the evidence and escalates any gap. Only personnel explicitly authorised for the specific action may apply a production change, and the result must be recorded and verified.

Completion Criteria

• Can explain the key risk or operational objective of this lesson
• Can identify the required systems, data, or evidence to review
• Can describe the correct escalation or handling process
• Can apply the lesson correctly in a supervised scenario