We classify our risks into two categories: Quantifiable risk and Non-quantifiable risk. Quantifiable risk is defined as "value creating risk," which we proactively take to generate a return. Our policy is to maximize the risk-adjusted return while maintaining Risk-adjusted Assets within our buffer.
Non-quantifiable risk is defined as "value breaking risk," which only generates losses when it surfaces. We are building a framework that prevents or minimizes the probability of this risk to materialize.