How does risk management work at the model level in Fincanva?

Fincanva also supports Risk Management at the model level, giving you control over how individual models react to market or economic signals. This uses a similar Risk On / Risk Off mechanism—but is applied within the assets inside each model.

How it works:

Each model can be configured to automatically adjust its internal asset allocation when certain conditions are met. For example:

• Risk Off If: Market volatility spikes (e.g., VIX > 25)

• Risk On If: Volatility falls back (e.g., VIX < 20)

What happens during Risk Off?

When Risk Off is triggered, the model can:

• Reduce exposure to riskier assets

• Shift some or all holdings to cash

• Pause new investments

• Rebalance capital on less risky assets

Once the recovery condition is met, and after the delay period (if set), the model transitions back to Risk On and resumes normal investing

? Read the full guide on setting up Risk Off rules.