Evaluate and refine hedging positions

Trigger: A scheduled portfolio review, a change in underlying asset exposure, or a shift in market volatility initiates the reassessment.

1. Aggregate current risk exposures and existing open positions
2. Analyze market trends and volatility forecasts
3. Model financial impacts of alternative hedging strategies
4. Evaluate pricing and liquidity of available derivative instruments
5. Select specific instruments to adjust the portfolio
6. Execute trades to establish or unwind positions
7. Update risk management systems and compliance documentation

Outcome: The hedging portfolio is adjusted through new instruments or closed positions to maintain alignment with corporate risk tolerance.