Risk management refers to the processes and tools you can implement to assess and mitigate risks of, in this case, a portfolio of digital assets or crypto trading activities. The goal is to reduce potential losses. That's why it can involve a multitude of actions like diversification evaluation, exposure and volatility evaluation or even the security measures you’ve put in place, among other factors. Knowing your risk is key in such a market to reducing financial losses and maximizing your portfolio’s performance.