Exercise 11: Risk Assessment Framework

⏰ Time Investment: 45-60 minutes 🎯 Goal: Build a comprehensive risk assessment framework

📚 Required Reading Integration 📖 Primary: Lesson 11: Risk Management

🔍 Phase 1: Knowledge Check (15 minutes)

1. What are the main types of DeFi risks?

• Your answer: _________________________________

2. How do you assess smart contract risk?

• Your answer: _________________________________

3. What is oracle risk?

• Your answer: _________________________________

4. How do you mitigate liquidation risk?

• Your answer: _________________________________

5. What is impermanent loss?

• Your answer: _________________________________

📊 Phase 2: Risk Assessment Template (20 minutes)

Create a risk assessment template for evaluating DeFi protocols:

• Smart contract risk checklist

• Oracle risk assessment

• Governance risk analysis

• Economic risk evaluation

💡 Phase 3: Protocol Evaluation (25 minutes)

Evaluate a real DeFi protocol using your framework:

• Identify risks

• Assess severity

• Recommend mitigations

• Decide if it's safe to use