Risk management isn't about predicting crashes - it's about being prepared for them. You can't know when the next drawdown will hit, but you can know your exposure: concentration risk, factor tilts, correlation assumptions, and how your portfolio would perform under stress.

Concentration is the silent killer. A 30% position in a single stock feels fine until it drops 50%. Correlation spikes in crises - diversification you thought you had evaporates when you need it most. Stress testing reveals these vulnerabilities before they become losses.

In this topic, you'll learn to monitor portfolio risk, set position limits, analyze factor exposure, and stress test against historical and hypothetical scenarios.