MARKET-DYNAMICSM35

Crisis Playbook and Risk Management

Build an actionable crisis playbook for Indian investors that balances protection, opportunity, and discipline.

Learning Goals

  • Create a risk management playbook for market stress.
  • Set rules for stop-loss, hedging, and opportunistic buying.
  • Understand when to act and when to stay calm.

Core Concepts

Pre-Defined Rules
Beginner

Define thresholds for selling, rebalancing, and buying before a crisis occurs, so decisions are not made in panic.

Hedging and Protection
Beginner

Use cash buffers, gold, and limited derivative hedges to protect the portfolio without sacrificing long-term returns.

Opportunity Planning
Beginner

A crisis plan should include a watch list and cash reserve to buy strong assets at lower prices.

Indian Market Context

During 2020, investors with a crisis playbook could take advantage of quality Indian stocks and ETFs while others waited on the sidelines.

Hands-On Calculators

Future Value Calculator
Future Value₹3,10,585

Gain: ₹2,10,585

Behavioral Insight

🧠 PANIC REACTION: Many investors sell after the first big drop and miss the recovery, even though prices are lower.

From History

Crisis Playbook and Risk Management

Investors who held through 2008 and rebalanced into beaten-down blue chips were rewarded in the recovery years.

Take the Quiz

Module Quiz
A crisis playbook should include:
Hedging should completely eliminate portfolio risk.
During a crash, the best action is often: