The hottest Risk management Substack posts right now

And their main takeaways
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Top Finance Topics

The Bear Cave #261

The Bear Cave • 396 implied HN points • 16 Feb 25
💼 Business Finance Investing Corporate Governance Market Analysis Risk management
  1. There's been some concern about AppLovin, a mobile app company. A researcher claims they are using a scheme that makes it look like users are rewarded for in-app purchases, which might not be genuine.
  2. Multiple company executives have recently resigned, including CEOs and CFOs from several firms. This shows instability in some companies and could affect their future performance.
  3. Some activists are raising issues about well-known companies, like Coca-Cola, and their social policies. This highlights ongoing debates around corporate responsibility and public perception.

Why Is Homeowners Insurance Getting So Expensive?

Construction Physics • 35493 implied HN points • 23 Jan 25
💰 Finance Insurance Economics Real Estate Risk management Climate Impact Homeownership
  1. Homeowners insurance costs have risen a lot over the past years, with a 33% average increase between 2020 and 2023. This has made it tough for many to afford insurance, leading some to rely on state-backed options.
  2. While rising construction costs and home sizes explain part of the increase, climate change and more frequent severe weather events are likely major factors driving up insurance prices further.
  3. Interestingly, even though some types of damage have become less frequent, the cost to repair them has increased, particularly for wind, hail, and water damage, which contribute significantly to higher insurance losses.

How security teams fail

lcamtuf’s thing • 8774 implied HN points • 12 Feb 25
🕹 Technology Information Security Cybersecurity Risk management Organizational Structure Corporate Governance
  1. Many companies don't prioritize hiring security teams until after a major security incident happens. This means their first security personnel often lack experience to build strong security programs.
  2. Over time, security teams can become rigid and focused on their own tasks rather than aligning with broader business goals. This may lead to them missing urgent risks.
  3. When a major breach occurs, it can finally highlight the weaknesses in security strategies. This often leads to a change in team structure and a chance to improve communication within the company.

Trading Catastrophe

Net Interest • 5 implied HN points • 21 Feb 25
💰 Finance Investing Insurance Risk management Capital Markets Asset Classes
  1. Hurricane Andrew changed how insurers think about risks. They realized they needed better coverage and to assess risk differently.
  2. Catastrophe bonds, or cat bonds, became popular after Hurricane Andrew. They allow investors to earn interest while helping insurers cover major losses.
  3. Today, cat bonds are expanding into retail markets, making them accessible to everyday investors. They have shown good returns, even as disasters become more frequent.

Stocks I'm Watching As The Market Sells Off

QTR’s Fringe Finance • 18 implied HN points • 28 Feb 25
💰 Finance Investing Market Trends Risk management Economic Analysis
  1. The stock market has recently seen a drop, and many analysts still insist it's always a good time to buy, regardless of prices. This seems unrealistic, especially when many factors suggest selling might be a better option.
  2. Big companies like Apple and Amazon significantly influence the stock market, while retail investors are often trading options instead of actual stocks. This creates a speculative environment where many aren't looking for real value.
  3. Despite market challenges, there are still opportunities to find valuable investments that aren't being highlighted in mainstream financial media. It's important to look for these hidden gems amid all the noise.
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Investment Portfolio Strategies - A Beginner's Guide (Part 1)

Concepts of Finance 🧠 • 379 implied HN points • 26 Sep 24
💰 Finance Investment Strategies Risk management Portfolio Management Financial planning Market Analysis
  1. Having an investment strategy is important because it helps you reach your financial goals. It guides your decisions based on your goals, how much risk you're comfortable with, and your future needs.
  2. Different investment strategies exist, like the 60/40 portfolio which mixes stocks and bonds, or the All Weather portfolio which is built for various economic conditions. Each has its pros and cons depending on your investment style.
  3. Before investing, ask yourself key questions about your savings, future expenses, and how much risk you can handle. This will help you create a strategy that fits your personal financial situation.

The o1 System Card Is Not About o1

Don't Worry About the Vase • 2732 implied HN points • 13 Dec 24
🕹 Technology AI Models Machine Learning Model Evaluation Risk management
  1. The o1 System Card does not accurately reflect the true capabilities of the o1 model, leading to confusion about its performance and safety. It's important for companies to communicate clearly about what their products can really do.
  2. There were significant failures in testing and evaluating the o1 model before its release, raising concerns about safety and effectiveness based on inaccurate data. Models need thorough checks to ensure they meet safety standards before being shared with the public.
  3. Many results from evaluations were based on older versions of the model, which means we don't have good information about the current version's abilities. This underlines the need for regular updates and assessments to understand the capabilities of AI models.

Managing Expand Projects

Software Design: Tidy First? • 1193 implied HN points • 02 Jan 25
💼 Business Project management Software Development Risk management Growth Strategies
  1. In a phase of rapid growth, problems can emerge suddenly, and it's crucial to focus on quick fixes instead of getting bogged down in perfect plans. This might mean using basic solutions to keep things running.
  2. When facing high demand and limited resources, the goal is to delay or prevent resource shortages. This can involve spending more money or reducing the growth rate to manage resources better.
  3. It's important to stay calm and creative during crises. Experimenting with new ideas in small, parallel teams can help find solutions quickly, which is necessary to continue growing without causing irreversible problems.

There are different types of security organizations, and that's ok

Frankly Speaking • 203 implied HN points • 28 Jan 25
🕹 Technology Cybersecurity Software Risk management Industry Trends
  1. There are many kinds of security organizations, and it's important to recognize that they each manage risks differently. This means not all tools will work for every organization.
  2. The cybersecurity industry has too many tools, which can create confusion and ineffective security management. Instead of just buying tools, companies should focus on building talent and critical thinking skills.
  3. Different businesses face different security risks, so their security needs should vary too. Tools should be tailored to meet these specific needs rather than forcing a one-size-fits-all solution.

Let's Talk About Malicious Browser Extensions: Part 2

!important • 43 implied HN points • 13 Feb 25
🕹 Technology Cybersecurity Web Security Browser Extensions Data Protection Risk management
  1. Malicious browser extensions can steal sensitive information like passwords and cookies. This puts users at risk of losing their accounts and personal data.
  2. In workplaces, these risks are even more serious because a breach can affect the whole organization and its customers. It's crucial for businesses to be aware of these dangers.
  3. Many security professionals need better training and tools to recognize the risks of browser extensions and to protect their systems effectively.

Cybersecurity's Delusion Problem

Resilient Cyber • 419 implied HN points • 29 Aug 24
🕹 Technology Cybersecurity Market Dynamics Data Privacy Risk management
  1. Cybersecurity isn't the only focus in business. Companies care about many things, like revenue and customer satisfaction, not just security.
  2. There's often not enough pressure on businesses to take security seriously. Sometimes it's cheaper for them to deal with breaches than to invest in security.
  3. Many cybersecurity talks happen in their own bubble, not considering the larger business world. For real progress, they need to speak the language that businesses understand.

Top Links 618 America's mounting insurance crisis. US record homelessness. Beijing's Himalayan mega dam & who killed Jazz?

Chartbook • 300 implied HN points • 14 Jan 25
🇺🇸 U.S. Politics Insurance Homelessness Disaster Public Policy Risk management
  1. America is facing a serious insurance crisis, especially in areas that are prone to disasters.
  2. More people are experiencing homelessness in the US than ever before.
  3. China is constructing a massive dam in the Himalayas, raising concerns and questions about its impact.

The confidential YouTube Investment Memo by Sequoia you were never meant to see

The VC Corner • 519 implied HN points • 21 Aug 24
💼 Business Venture Capital Investment strategy Risk management Entrepreneurship Market Analysis
  1. Sequoia Capital's investment memo shows how they viewed YouTube as a potential leader in user-generated video. They spotted emerging trends like cheaper video equipment and better internet access that would help YouTube grow.
  2. The memo highlights the importance of a clear, simple investment thesis. The way Roelof Botha presented his ideas was straightforward and confident, making it easier for others to understand his vision.
  3. By analyzing both risks and opportunities, the memo provides a valuable lesson in balanced investing. Recognizing what could go wrong while staying focused on the potential for success is key in venture capital.

DeFi Education Q&A (July 2024 pt. 2)

DeFi Education • 679 implied HN points • 10 Aug 24
🔮 Crypto DeFi Market Trends Investing Portfolio Management Risk management
  1. The DeFi market is currently facing some challenges, so it's important to be cautious and reduce high-risk investments like leverage.
  2. After a market dip, there might be good buying opportunities soon after, but it's wise to approach these with a short-term mindset.
  3. Staying updated on market trends and being part of a community can help you navigate through the ups and downs of investing.

Ambiguity is worse than risk

Klement on Investing • 3 implied HN points • 19 Feb 25
💰 Finance Investing Risk management Market behavior Economic Policy
  1. Ambiguity can be more stressful than known risks. When people face uncertain situations about their jobs or income, they tend to invest less in risky assets.
  2. Financial insecurity leads to lower risk-taking in investments. People who feel financially unstable often shy away from stocks, choosing safer options like bonds.
  3. On a larger scale, countries with high financial insecurity may save less, which can worsen their economic situation. Improving financial security could help boost savings and reduce deficits.

Climate Journalism Done Right

The Honest Broker Newsletter • 1933 implied HN points • 24 Oct 24
🌞 Climate & Environment Climate change Environmental Policy Risk management Media Analysis
  1. Billion-dollar disasters, like hurricanes, are becoming more common, but this may be more about increasing populations and property in storm-prone areas than just climate change.
  2. The data used by NOAA to track these disasters was not originally intended to prove or analyze the impact of climate change, which raises questions about its relevance to climate policy.
  3. Experts agree that while climate change is real, the way we categorize and understand disaster costs is heavily influenced by societal growth and the increasing value of assets in risky areas.

Higher bank capital requirements work

Klement on Investing • 1 implied HN point • 20 Feb 25
💰 Finance Banking Regulations Capital Economic Growth Risk management
  1. Banks now have to keep more money in reserve, which helps prevent risky behavior and protects the economy. This rule came after the 2008 financial crisis.
  2. Even though higher capital requirements may lower banks' profits, they do not slow down overall economic growth. The economy remains stable without large drops in growth.
  3. Overall, increased capital requirements reduce the chances of serious economic downturns, which is a big win for financial stability. It seems like this regulation is working well.

Why Insurance Companies Are Rationally Failing Their Social Purpose

Software Design: Tidy First? • 1391 implied HN points • 25 Oct 24
💼 Business Insurance Finance Economics Investing Risk management
  1. Insurance is meant to convert risks into opportunities, allowing people to buy homes and start businesses by protecting lenders against losses. But it's complicated when companies only want to insure low-risk customers.
  2. Insurance companies often cut back on the risks they cover to stay competitive and offer lower prices, which means they might not support those in need, like entrepreneurs with health issues.
  3. For insurance to work as it should, companies need to stop focusing solely on low-risk clients. They should start covering real people, including those who are a bit riskier, to provide the societal benefits that insurance was originally designed for.

How AI security companies fail

Frankly Speaking • 254 implied HN points • 10 Dec 24
💼 Business Startups Market Trends Product Development AI Technology Risk management
  1. AI security companies face both market and product risks. If there's no market for their products, they can't succeed.
  2. Startups often fail due to common issues like poor timing or operations. This is true for AI security startups as well.
  3. Many AI security companies are throwing out new ideas to see what works. This trial-and-error approach leads to uncertainty in the market.

CBW Fights FDIC's $20.5 Million Penalty That Could "Imperil" Its Existence

Fintech Business Weekly • 89 implied HN points • 05 Jan 25
💰 Finance Banking Regulation Investment Fintech Risk management
  1. CBW is facing a huge $20.5 million fine from the FDIC, which could put its future at risk. This penalty is due to failures in its anti-money laundering practices.
  2. A small Kansas bank, CBW, has made a lot of money from international services but hasn't fixed issues raised by regulators in past reviews. They were supposed to improve but didn't make significant changes.
  3. The FDIC argues that the situation with CBW highlights serious compliance problems in the banking sector. They are trying to enforce rules to prevent money laundering, especially in high-risk areas.

We are in Deep Seek

The Cosmopolitan Globalist • 23 implied HN points • 30 Jan 25
🕹 Technology AI Ethics Open Source Risk management Innovation Regulation
  1. AI technology has potential benefits, but it also comes with serious risks, especially if it falls into the wrong hands. This includes weaponization or harmful behaviors.
  2. The current pace of AI development is driven by economic and military incentives, which makes it hard to prioritize safety and caution.
  3. There's a need for better global cooperation and regulation in AI development to ensure it benefits humanity while minimizing the risks.

TBM 325: Skeptoptimism – Thinking Slow, Acting Fast

The Beautiful Mess • 952 implied HN points • 01 Dec 24
💼 Business Team Dynamics Planning Execution Leadership Risk management
  1. Thinking slowly helps in planning well and reducing risks. It's not sitting idle; it's about being active and experimenting with ideas.
  2. Being a skeptoptimist means balancing a belief in teams with a realistic view of challenges. It's important to express confidence in the team's ability to succeed while addressing risks.
  3. It's key to involve others in 'slow thinking' to ensure they understand and support the process. Sharing your thoughts can help bridge the gap between deep exploration and action.

Security for AI: A lot is unknown

Frankly Speaking • 203 implied HN points • 26 Nov 24
🕹 Technology AI Security Data Protection Risk management Tooling Policies
  1. Understanding AI is crucial for its security. If you don't understand how something works, it's hard to protect it.
  2. The basic security issues with AI are similar to existing security practices. Protecting data and conducting regular audits can help.
  3. Setting policies for AI security is important. This includes knowing what data is used and how internal AI tools are developed.

Big Risks: Catastrophic Risk in Investing and Business

Musings on Markets • 1139 implied HN points • 17 Feb 24
💼 Business Risk management Investment strategy Valuation Methods Market behavior Financial Analysis
  1. Catastrophic risks can come from many sources like natural disasters, hacks, or changes in laws. They can seriously threaten a business's survival and impact its value.
  2. It's crucial for business owners to understand how these risks affect their financial situation. They can either be insurable or uninsurable, and knowing this helps in making better decisions.
  3. People often react emotionally to risks, sometimes ignoring them until it's too late. Understanding these reactions can help in making smarter investments and preparing for the worst.

Dealing with a big loser (business brew appearance / companion post)

Yet Another Value Blog • 1159 implied HN points • 02 Feb 24
💰 Finance Investing Portfolio Management Risk management
  1. Investing is a psychological game - need confidence to swing hard at good ideas.
  2. Having a big loser can shake confidence but it's important to avoid going "on tilt" and getting overly aggressive.
  3. To deal with big losses, reflect on decisions made, re-evaluate portfolio positions with a clear mind, and seek insights from others.

Market Cap vs. Equal Weighted Index Funds - Explained

Concepts of Finance 🧠 • 239 implied HN points • 20 Jun 24
💰 Finance Investing Index funds Market Analysis Risk management Portfolio strategy
  1. Market-cap weighted index funds invest more in larger companies, which can mean more stability but also more risk if those big companies do poorly.
  2. Equal-weighted index funds treat all companies the same, offering more diversification and potential for growth, but they can be more volatile and expensive to manage.
  3. Choosing between these two types of funds depends on your comfort with risk, your investment goals, and how you think the market will perform in the future.

❄️🏢 Acheter un immeuble de rapport : tout ce qu’il faut savoir

Snowball • 1100 implied HN points • 22 Jan 24
💰 Finance Real Estate Investing Property Management Financial planning Risk management
  1. Buying an income-building property requires thorough preparation and attention to details before making the purchase.
  2. Investing in buildings with multiple rented units can offer advantages like lower price per square meter, increased yield, and centralized management.
  3. When visiting potential properties, it's crucial to ask the right questions to sellers, observe key elements on-site, and gather essential documents for further evaluation.

Is your project on schedule? How do you know?

Respectful Leadership • 54 implied HN points • 29 Dec 24
💼 Business Project management Leadership Team Dynamics Risk management
  1. To keep projects on track, it's essential to dig deep into details and understand all aspects involved. This helps find hidden issues before they become problems.
  2. Unexpected challenges will always arise, so having backup plans is crucial. It's better to prepare for potential setbacks than to face surprises later.
  3. Effective project estimates need thorough discussions and clear communication among all teams. This helps ensure everyone understands what needs to be done and avoids over-optimism.

Ethena: Fundamentally Flawed?

DeFi Education • 819 implied HN points • 21 Feb 24
🔮 Crypto Decentralized Finance Stablecoins Ethereum Trading Strategies Risk management
  1. Ethena aims to provide attractive yields through a unique trading strategy that combines staking ETH and selling futures contracts. This could help users earn money while managing risk.
  2. There are concerns about Ethena's design, including the fact that it relies on staked ETH, which carries more risks. If things go wrong, users might face significant losses.
  3. While Ethena might seem like a good option now, it's important for investors to be cautious and understand the risks involved, as past attempts in this area have often failed.

Data Exfiltration from Slack AI via indirect prompt injection

PromptArmor Blog • 604 HN points • 20 Aug 24
🕹 Technology Cybersecurity Artificial Intelligence Data Privacy Software Development Risk management
  1. There is a serious vulnerability in Slack AI that lets attackers access confidential information from private channels without needing direct access. This means sensitive data can be stolen just by manipulating how Slack AI processes requests.
  2. The risk increases with the recent Slack update that allows AI to access files shared within the platform. This could mean that harmful files uploaded by users can also be exploited to extract confidential information.
  3. Both data theft and phishing attacks can happen through crafted messages in public channels. This makes it crucial for users to be careful about what they share, because attackers can trick the AI into sharing sensitive details.

The Year-End Money Market Storm

Concoda • 464 implied HN points • 19 Dec 24
💰 Finance Market Trends Investment Strategies Monetary Policy Financial Instruments Risk management
  1. Demand for funding is very high right now, causing banks to struggle. This could lead to big changes in money markets by the end of the year.
  2. Many traders are looking for ways to finance their stock trades, leading to more activity in repo markets. This means borrowing money using stocks as collateral is becoming common.
  3. There's a big challenge with U.S. government debt right now. The banks need to buy up a lot of unwanted debt at a time when borrowing money is getting tougher.

Interest Rate Risks are Collapsing Banks

The Informationist • 1650 implied HN points • 30 Apr 23
💰 Finance Banking Interest Rates Risk management Financial Crisis Investments
  1. Interest rate risks can lead to bank collapses due to mismanagement and lack of oversight
  2. Different types of interest rate risks affect banks' financial positions, such as repricing risk and basis risk
  3. It is important for individuals to be cautious with their bank deposits and consider diversifying investments based on personal risk tolerance and long-term goals

Navigating AI Risks with ATLAS

Resilient Cyber • 19 implied HN points • 04 Sep 24
🕹 Technology AI safety Cybersecurity Risk management Data Protection Machine Learning
  1. MITRE's ATLAS helps organizations understand the risks associated with AI and machine learning systems. It provides a detailed look at what attackers might do and how to counteract those strategies.
  2. The ATLAS framework includes various tactics and techniques that cover the entire lifecycle of an attack, from reconnaissance to execution and beyond. This helps businesses prepare better defenses against potential threats.
  3. Using tools like ATLAS and its companion resources can help secure AI adoption and development by highlighting vulnerabilities and suggesting mitigations to reduce risks.

The Everything Bubble Suddenly Feels Unstable

QTR’s Fringe Finance • 29 implied HN points • 15 Jan 25
💰 Finance Investing Market Trends Economic Policy Central Banking Risk management
  1. Investors might need to prepare for tougher conditions in the market. It seems like the Federal Reserve might not be there to support them like before.
  2. The era of easily accessible money may be changing. Investors who relied on quick fixes might find it harder to bounce back from crises.
  3. It's important for investors to rethink their strategies. They may need to adapt to a new reality where traditional safety nets aren't guaranteed.