Module M4

M4 • Risk, Limits & Liquidity

Implement enterprise risk controls: limits, exposure, liquidity planning, and stress testing with evidence.

← Previous Take Quiz Mark Module Complete Next →

Track

—

Progress

1) Outcomes & timebox 2) Core concepts 3) Trust boundaries & controls 4) Evidence & proof artifacts 5) Mini case study 6) Worksheet (download)

Outcomes & timebox

Enterprise grade = clear outputs

By the end you can

Explain the enterprise operating model for risk, limits & liquidity
Identify control points, owners, and escalation paths
Define evidence outputs that satisfy enterprise review
Produce a reusable artifact template for your Proof Pack

How to use this module

Read the tables, then complete the scenario + worksheet. Download the artifact to your delivery repo.

Enterprise test If a bank asked “show me,” you can hand them controls + evidence + runbook steps within 10 minutes.

Core concepts

Vocabulary + enterprise expectations

Operating model

What “good” looks like

Control	Purpose	Example	Owner	Evidence
Limits	Prevent overexposure	Daily redemption cap	Risk owner	Limit config + alerts
Threshold alerts	Early warning	Mismatch > X	Ops on-call	Alert logs
Liquidity buffers	Meet obligations	Reserve ratio	Treasury owner	Liquidity report
Stress tests	Model extremes	Redemption spike	Risk team	Test report + signoff
Kill switch	Stop unsafe flows	Pause transfers	Security owner	Activation log

Turn each row into: owners → controls → monitoring → evidence.

Roles

Who owns what

Risk owner

Defines limits, thresholds, stress tests, and review cadence.

Treasury owner

Maintains liquidity planning and buffer policy.

Ops on-call

Executes limit breach playbook and escalations.

Clarity closes deals Ambiguous ownership = buyer assumes risk = approval stalls.

Trust boundaries & controls

Where enterprise risk actually lives

Boundaries

Boundaries you must control

Boundary A: Business policy → System config

Policies must translate to enforced configs.

Evidence: Policy doc + config export + approvals

Boundary B: System → Response

Breaches must trigger response with owners.

Evidence: Alerts + paging + runbook steps

Boundary C: Response → Evidence

Every breach must leave an audit trail.

Evidence: Breach ticket + resolution + postmortem

Minimum control set

Controls you must be able to prove

Limit library (per flow: mint/transfer/redeem)
Breach alerts with owner + SLA
Review cadence (weekly risk review)
Stress tests and signoff
Kill switch and authority policy
Liquidity buffer policy

Buyer question “If this breaks at 2am, who sees it, what do they do, and where’s the evidence?”

Evidence & proof artifacts

What makes enterprise buyers trust you

Proof artifacts

Add these to your Proof Pack

Limits Matrix (flow → limit → owner)
Breach Playbook (steps + escalation)
Liquidity Report Template
Stress Test Template
Kill Switch Policy

Evidence rule

Evidence must be time-bound, attributable, and reviewable — without leaking private keys or customer PII.

Template

Downloadable artifact

Complete the worksheet below and download a Markdown file to your repo.

Mini case study

Enterprise thinking in 10 minutes

Scenario

Redemption spike + liquidity pressure

Redemptions spike 5× normal volume. Buyer asks: “How do limits and liquidity buffers prevent failure?”

Your response must include

Limit breach detection + response
Liquidity buffer drawdown rules
Escalation to treasury owner
Customer comms path (if needed)
Evidence + postmortem threshold

Write your ops response

Write 6–12 lines you could hand to an enterprise buyer.

Download as .md

Optional, but it turns training into a deliverable.

Worksheet

This becomes your capstone foundation

Fill & download

Fill the fields and download the artifact for your Proof Pack.

Limits matrix (flow/limit/owner) Breach response steps Stress test plan

Download Artifact →

What “enterprise grade” means

Not statements — outputs

Every module produces an artifact: checklist, runbook section, control matrix, or proof pack component.

Measurable gates

Quizzes + capstone + exam. Completion is earned by passing gates.

Repeatable delivery

Templates, owners, SLAs, and evidence. That’s what closes enterprise deals.

Take M4 Quiz → Next Module →