The information that how a judiciously chosen, non‐time‐homogeneous volatility that effectively mimic the effects of a two‐state Markov‐chain model when markets are in an excited state is used. This chapter makes use of this insight in order to put in place what one calls ‘survival hedging’, i.e., a set of transactions that protect the value of a complex derivatives book in times of market turmoil. This is the most extreme case of out‐of‐model hedging. This is because, when market moves are ‘normal’, many reasonable hedging strategies perform adequately well, at least as long as some central features of the underlying process are correctly captured. To analyze the survival‐hedging performance under conditions of market stress, the chapter provides a case study.