The hottest Risk management Substack posts right now

And their main takeaways
Category
Top Finance Topics

A small progress

Thái | Hacker | Kỹ sư tin tặc • 818 implied HN points • 22 Dec 23
🕹 Technology Cybersecurity Fintech Digital Transformation Government Risk management
  1. The Vietnamese Government is focusing on enhancing cybersecurity in the banking and cashless payment sectors to prevent system intrusions and theft from bank accounts.
  2. Foreign hackers have previously stolen significant amounts of money from domestic banks in Vietnam, prompting authorities to take action.
  3. Efforts by organizations like Calif, led by the author, aim to reduce vulnerabilities in critical national systems and contribute to enhancing security measures in Vietnam.

Software's Iron Triangle: Cheap, Fast and Good - Pick Two

Resilient Cyber • 39 implied HN points • 14 Aug 24
🕹 Technology Cybersecurity Software Quality Market Dynamics Regulation Risk management
  1. Balancing quality in software is tough. You can have it cheap, fast, or good, but you can only pick two options.
  2. There's a big gap in information between software makers and users. Many users don’t really know what's in the software they use or how secure it is.
  3. The security of software often takes a back seat to speed and cost. This leads to issues where security measures are seen as extra costs, not necessities.
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Regulators Should Conduct "Material Loss Review" Of Synapse Disaster

Fintech Business Weekly • 52 implied HN points • 08 Dec 24
💰 Finance Banking Investments Regulation Fintech Risk management
  1. Regulators should look into the Synapse disaster to understand what went wrong. This could help prevent similar issues in the future.
  2. There is a significant amount of lost funds that still needs to be clarified, impacting many users. Authorities need to take responsibility and provide transparency.
  3. The emotional toll on the people affected is serious, as highlighted by the Synapse trustee's feelings during court. Many end users are suffering and need answers.

February 2025, Week-1

The Parlour • 4 implied HN points • 05 Feb 25
💰 Finance Machine Learning Risk management Statistical Analysis
  1. The study on Network Linear Covariance Models shows that using GNAR models can help better predict stock price movements in the S&P 500, especially during busy trading times.
  2. Agent-Based Modelling is a new method introduced to simulate financial markets, which can help us understand market behavior more clearly.
  3. These research efforts highlight how machine learning techniques can be applied to finance, providing insights that can improve trading strategies.

Risk Tolerance is Earned

Superfluid • 92 implied HN points • 30 Oct 24
💼 Business Career development Startups Personal Finance Risk management Work Culture
  1. Risk tolerance grows by taking small risks over time. You don't have to make huge moves right away; start with little steps to build your confidence.
  2. Working in a challenging environment, like a startup, can push you beyond your comfort zone. This can help you find what really matters to you in your career.
  3. Stability is often a goal for many, especially for those with immigrant backgrounds. However, it's important to aim high and take calculated risks to discover new opportunities.

Futarchy, Distortions from Hedging, and Other Thoughts

Something to Consider • 79 implied HN points • 28 Jun 24
🇺🇸 U.S. Politics Governance Prediction Markets Economic Policy Risk management Voting Systems
  1. Futarchy is a new way to make decisions where people vote on what they want to achieve, but experts decide the best way to get there using prediction markets. This means we focus on outcomes instead of specific policies.
  2. When people are risk-averse, they might prefer safer options, and this can affect the choices made in a futarchy setup. It’s important to balance between achieving high goals and taking on too much risk.
  3. Even though prediction markets are useful, they can be skewed by people's efforts to hedge against risks. This means prices might not always reflect the true chances of outcomes, but they can still provide valuable information.

Bringing Security Out of the Shadows

Resilient Cyber • 99 implied HN points • 06 Jun 24
🕹 Technology Cybersecurity AI Software Compliance Risk management
  1. Shadow usage happens when employees use technology without telling the IT or security teams. This is easy to do, especially with things like personal devices and remote work.
  2. Cybersecurity teams often react to problems instead of staying ahead of technology trends. Instead of waiting for issues to arise, they should explore and adapt new technologies early.
  3. Long-lasting issues between security teams and other departments lead to frustration. If security teams work better with others, they can create a smoother, more productive environment.

The Price of Risk: With Equity Risk Premiums, Caveat Emptor!

Musings on Markets • 759 implied HN points • 05 Aug 23
💰 Finance Equity Investing Risk management Market Analysis Corporate Finance
  1. Equity risk premium (ERP) is the extra return investors expect from risky investments compared to risk-free ones. Understanding this helps investors make better decisions about stocks.
  2. Different methods to measure ERP can give very different results. It's important to understand why and how these estimates change over time.
  3. Using a consistent and logical approach to estimating ERP is crucial for making informed investment choices. Each method has its pros and cons, and what works best may depend on your investment goals.

Market Right Now Is "A Story Of Contrasts"

QTR’s Fringe Finance • 13 implied HN points • 20 Jan 25
💰 Finance Market Analysis Trading Strategies Investment Advice Economic Trends Risk management
  1. The current market is unpredictable and may not be the best time to make forced trades.
  2. It's important to watch for short-term price jumps created by sentiment changes and market positioning.
  3. Relying on experienced traders for insights can be helpful, but always consult a financial advisor before making decisions.

You should get a pre-nuptial agreement

Something to Consider • 79 implied HN points • 18 Jun 24
💰 Finance Insurance Contracts Marriage Investment Risk management
  1. Getting a pre-nuptial agreement is like buying insurance for your marriage. It protects both partners in case things don't go as planned.
  2. Many people think a prenup shows distrust, but it actually helps avoid messy court battles later. It's about planning for the future.
  3. Not having a prenup means accepting a default contract from the state. It's better to negotiate your own terms when you both feel good about each other.

Performative Failure

Investing 101 • 69 implied HN points • 03 Nov 24
💼 Business Venture Capital Entrepreneurship Investment Strategies Risk management
  1. Performative failure, where people act as if they are failing for show, can prevent real learning and growth. It's better to genuinely take risks and embrace true failure.
  2. Shame often stops people from trying because they confuse their self-worth with their success or failure. It’s important to separate who you are from what you achieve.
  3. Choosing the right challenges to pursue is key. Aiming for meaningful goals makes any failures valuable and worthwhile, as they contribute to growth and character.

Market Resilience or Investors in Denial: The Market at Mid-Year 2023

Musings on Markets • 799 implied HN points • 18 Jul 23
💰 Finance Market Analysis Investment Strategies Economic Trends Stock Market Risk management
  1. The first half of 2023 surprised many investors who expected a tough year, as markets unexpectedly improved despite fears of inflation and recession.
  2. Tech companies, especially big names like Apple and Microsoft, drove the stock market's gains, while some sectors like energy struggled.
  3. Overall, it's important to stay humble in investing because predicting market trends is extremely difficult, and what goes up can also come down.

3 Key Areas for Mitigating Non-Human Identity (NHI) Risks

Resilient Cyber • 39 implied HN points • 24 Jul 24
🕹 Technology Cybersecurity Identity Management Risk management Incident Response Automation
  1. Organizations need to keep track of all non-human identities, like service accounts and API keys. This helps in monitoring and managing security across different systems.
  2. When a third party experiences a security breach, it's crucial to quickly identify which non-human identities are affected. Rapid response can help limit potential damage and keep business running smoothly.
  3. Detecting unusual behavior in non-human identities is key to spotting security threats. Using automated tools can help security teams stay on top of potential risks efficiently.

From Runway to Career Capital: A Framework for Evaluating Startup Jobs

Optima & Outliers • 59 implied HN points • 01 Jul 24
💼 Business Startups Career development Job Market Investment Strategies Risk management
  1. When considering a startup job, focus on how it will help your career instead of just picking a 'winner'. Think about your long-term goals and how the role aligns with them.
  2. Do your homework before joining a startup. This means asking about the company's funding, goals, and speaking with people who know the founders to understand their track record.
  3. Look for opportunities to learn and build connections in a startup. These experiences can boost your resume and help you grow your professional network.

What is a Derivative?

Concepts of Finance 🧠 • 279 implied HN points • 11 Feb 24
💰 Finance Investing Risk management Market Analysis Financial Instruments Trading Strategies
  1. Derivatives are financial tools that get their value from something else, like stocks or commodities. They don't have value on their own; their worth depends on the performance of the underlying asset.
  2. Derivatives exist to help with risk management, leverage potential gains, and allow speculation on price movements. They can protect investments or amplify losses based on how they're used.
  3. There are different types of derivatives, including futures, options, and swaps. Each has its own way of working, but all can increase financial risk if not used carefully.

Shades of 2008?

The Dollar Endgame • 239 implied HN points • 29 Feb 24
💰 Finance Real Estate Banking Market Trends International Markets Risk management
  1. The commercial real estate market is facing challenges due to decreased demand for office and retail spaces, leading to increased vacancy rates.
  2. Approximately $1.2 trillion of commercial real estate debt in the US is set to mature within the next two years, posing risks for banks and investors.
  3. There are concerns of a commercial real estate crisis resembling the 2008 financial crisis, with warning signs evident in the US, Europe, and Asia.

How Liquidity Impacts Market Crashes

DeFi Education • 599 implied HN points • 15 Sep 23
💰 Finance Market Trends Investment Strategies Risk management Market Analysis Cryptocurrency
  1. Low liquidity can cause big price drops in markets, meaning even small buy or sell orders can affect prices a lot. This can lead to more volatility and crashes.
  2. Market makers provide important liquidity, but they may pull back during volatile times. This makes it harder for traders to buy or sell quickly without impacting prices.
  3. Knowing when liquidity is low can help investors manage risks better. By watching market conditions, investors can make smarter decisions about when to trade or hold their assets.

In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets • 599 implied HN points • 15 Aug 23
💰 Finance Investments Market Trends Risk management Economic Indicators Corporate Finance
  1. Risk-free investments aren't always truly safe, especially during financial crises. Events like the 2008 crisis showed that even government bonds can carry risk.
  2. Inflation and real interest rates play a big role in determining risk-free rates, meaning they can change based on economic conditions. A higher expected inflation usually leads to higher risk-free rates.
  3. The trust in governments to honor their debt has declined over time, leading to uncertainty about using government bonds as risk-free investments. This loss of trust makes it essential to reassess what we consider safe investments.

Open Source Security Landscape 2024

Resilient Cyber • 139 implied HN points • 21 Apr 24
🕹 Technology Cybersecurity Open Source Software Development Risk management
  1. Most codebases now use a lot of open source software, which can come with serious security risks. This means many systems are more vulnerable because they contain known vulnerabilities that might not be addressed.
  2. The number of components in applications is increasing, leading to software bloat. This makes it tough for teams to manage security and keep everything up to date, which can create more risks for users.
  3. Licensing issues are common in open source software, with many projects having conflicts or unclear licenses. This can lead to legal problems for businesses that use these components in their software.

Zen And The Art Of Market Crash Fear Porn

QTR’s Fringe Finance • 28 implied HN points • 21 Dec 24
💰 Finance Market Analysis Investment strategy Economic Trends Monetary Policy Risk management
  1. It's important to consider that you could be wrong about the market crashing; sometimes things can go up instead of down. Keeping an open mind helps in understanding the unpredictable nature of markets.
  2. Thinking about worst-case scenarios can be useful, even if they seem unlikely. It’s good to prepare yourself mentally for different outcomes.
  3. Rethinking your assumptions is healthy, especially when the market behaves in ways that don't make sense. Questioning yourself can lead to growth and better insights.

What does a Commodity Trader do?

Concepts of Finance 🧠 • 199 implied HN points • 07 Mar 24
💰 Finance Trading Commodities Market Analysis Risk management Investment Strategies
  1. Commodity traders buy and sell things like oil, gold, and wheat. They try to predict price changes based on global events to make profits.
  2. Their work impacts everyday prices for many products we use, helping producers manage risks and securing stable prices for the future.
  3. Traders pay attention to weather, politics, and market feelings to make informed decisions, using tools like futures contracts and diversification to manage risks.

Investing Is Like Riding A Roller Coaster

Spilled Coffee • 32 implied HN points • 18 Dec 24
💰 Finance Investing Market Trends Risk management Economic Analysis
  1. Investing can be unpredictable, much like a roller coaster ride. You have to be prepared for ups and downs in the market.
  2. Recent years have felt calm for investors, similar to a lazy river ride, but things can change unexpectedly in the future.
  3. No one really knows what will happen in the market next, so it's important to stay cautious and ready for surprises.

Good (Bad) Banks, Good (Bad) Investments: An Investing Perspective

Musings on Markets • 819 implied HN points • 07 May 23
💰 Finance Investing Banking Valuation Market Analysis Risk management
  1. Good banks tend to have stickier deposits, which help them maintain stability. Buying a good bank at a high price might actually lead to losses compared to buying a bad one at a low price.
  2. Valuing banks is tricky because their cash flows and risks are different from other businesses. Instead of using traditional methods, one should often use a dividend discount model or a free cash flow to equity model.
  3. The price of a bank's stock can differ significantly from its actual value. Understanding both the intrinsic value and market price is key to making smart investment decisions.

Everything is Risk (+Radiant Capital)

DeFi Education • 759 implied HN points • 27 May 23
💼 Business Finance Risk management Investing Career development Personal Growth
  1. Risk-taking is essential for growth and success. If you don’t take risks, you might miss out on big opportunities.
  2. Real-life experiences with risk help you learn and get better at decision-making. It’s important to face challenges to achieve greatness.
  3. In sports and investing, the biggest rewards come from taking calculated risks. Embracing these chances can lead to significant achievements.