Highlights from “Lines of Defense: A Modern Risk Playbook” Webinar Series

Missed the session? Catch the replay here.

Sterling Trading Tech’s new webinar series, “Lines of Defense: A Modern Risk Playbook,” kicked off this month with its first session: Real-Time Risk Management in Volatile Markets.

Moderated by Julie Armstrong, Chief Commercial Officer at Sterling Trading Tech, the session featured an engaging discussion with Sterling’s Brian Saldeen, Senior Product Manager, Risk and Margin, and eflow Global’s Jonathan Dixon, Head of Surveillance, exploring how modern firms can better manage market risk in an era of mounting volatility.

Understanding market cycles
Markets cycle between high and low volatility and each state brings unique risk management challenges. As Dixon explained, large macro events, e.g., tariff shifts, rate reversals, major budget announcements, trigger broad market movements and create waves of false positives.

Conversely, in quieter markets, individual stock risks can catch firms off guard. “Low-volatility environments can actually be harder to manage due to idiosyncratic risks,” added Saldeen. A strong risk framework must anticipate both extremes.

Building smarter defenses
Effective risk management starts with pre-trade controls: automated checks to reject trades that would breach margin or risk limits. Post-trade, firms must efficiently sort and prioritize alerts to focus analyst time on what matters most.

“You want a risk policy that works across all environments,” said Saldeen. They need to be flexible enough to adapt without constant manual adjustment. Dixon agreed, noting that thresholds and policies should incorporate both firm-specific and market-wide data to minimize unnecessary alerts.

How technology makes the difference
AI and automation are rapidly transforming the risk landscape. “AI can help firms surface risks faster; not make decisions for them, but empower them to act decisively,” Dixon emphasized. For example, AI tools can refine alert scoring, adjust thresholds intelligently, and streamline investigations.

On the automation side, Sterling’s APIs have enabled clients to eliminate hours of manual work. As an example, one client now fully automates its daily expiring options management, improving both efficiency and accuracy.

Risk as a competitive advantage
Both speakers underscored that good risk management is not just regulatory hygiene, it can set firms apart. “The smarter you are in managing risk, the more freedom you can give your traders and clients,” said Saldeen. Strong systems reduce losses, lower operational costs, and help firms scale during periods of high volatility.

This first webinar offered actionable insights for firms looking to strengthen their risk defenses. The series continues with the second webinar taking place this Thursday, June 26 at 8:30 am EDT/1:30 pm BST. Find out more here for details and registration for Post-Trade Market Risk and Surveillance.