The point of risk management isn't that you never have any losses, it's that your losses won't be large enough to produce a crisis (e.g. where you can't honor w

The point of risk management isn't that you never have any losses, it's that your losses won't be large enough to produce a crisis (e.g. where you can't honor withdrawal requests). If the other party is also managing their risk well, they may take a loss, but they won't be "wiped out".