Market Risk Management Strategy for a Multi-Asset Portfolio

In the current market environment characterized by increasing interest rates and significant geopolitical tensions, you are a senior portfolio manager responsible for managing a $100 million multi-asset portfolio for a family office. The client's investment policy statement emphasizes capital preservation, moderate growth, and a strong aversion to significant drawdowns. In your assessment, you note that the portfolio is heavily weighted in equities, which have experienced a sharp correction recently.

Given this context, outline a comprehensive risk management strategy focusing on managing market risk. Your response should include:

1. An analysis of the current market conditions and their potential impact on the portfolio.
2. A discussion of specific risk management techniques, including any derivative strategies you might employ.
3. A recommendation for rebalancing the portfolio, highlighting any asset classes you might use to reduce overall risk.