Mitigation Strategy

Definition ∞ A Mitigation Strategy is a planned approach designed to reduce the severity, impact, or probability of potential risks or adverse events. In the digital asset space, this involves implementing security measures against hacks, developing contingency plans for market volatility, or establishing governance procedures to address protocol vulnerabilities. These strategies aim to protect users and maintain system stability.
Context ∞ The continuous evolution of the digital asset landscape necessitates dynamic mitigation strategies to address emerging threats, from smart contract exploits to regulatory shifts. Discussions often revolve around the effectiveness of various technical and operational safeguards, as well as the need for proactive risk identification. Robust mitigation planning is a critical component of building resilient and trustworthy blockchain ecosystems.