The hottest Risk management Substack posts right now

And their main takeaways
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Top Finance Topics

In Tackling Near-Term AI Risks, Old-School Monitoring and Filtering Have Value

Risk Musings • 401 implied HN points • 30 Sep 23
🕹 Technology AI Monitoring Risk management
  1. Old-school monitoring and filtering techniques can be valuable in addressing immediate AI risks.
  2. Implementing data loss prevention (DLP) strategies can help prevent data leakage into AI systems.
  3. Monitoring software with a focus on tracking uncertainties in large language models can be a useful tool to reduce falsehoods in AI-generated content.

Your Guide To Bull Market Pain Levels

The Lund Loop • 78 implied HN points • 10 Feb 24
💰 Finance Investing Stock Market Risk management Financial planning Speculation
  1. Investors experience different levels of pain in a bull market, ranging from mild discomfort to severe distress.
  2. The Pain Assessment Scale categorizes bull market pain into three main levels: Pain Free, Mild Pain, Moderate Pain, and Severe Pain.
  3. Addressing issues like position sizing, risk management, and speculation can help alleviate bull market pain. Seeking help from a financial planner is advisable if symptoms persist or worsen.

Unknown and Unknowable

Lewis Enterprises • 334 implied HN points • 08 Oct 23
💰 Finance Investing Artificial Intelligence Risk management
  1. Richard Zeckhauser's essay emphasizes recognizing a lack of edge rather than just analytical skill in investing.
  2. Asset prices can heavily discount ambiguity in situations where future states are unknown.
  3. Artificial Intelligence could be applied in investing UU situations based on Zeckhauser's maxims for investing in the unknown and unknowable.

Third-Party Security Risks

Rod’s Blog • 39 implied HN points • 04 Mar 24
🕹 Technology Security Risk management Technology Tools Data Breaches
  1. In the interconnected business landscape, managing third-party risks is crucial to protect sensitive information. Careful vendor selection, effective risk management strategies, and strong contracts can help minimize risks.
  2. Third-party risks can lead to severe consequences like financial losses, legal liabilities, reputation damage, and regulatory penalties. This highlights the importance of proactively addressing these risks.
  3. Common types of third-party risks include data breaches, system compromises, non-compliance with regulations, and supply chain disruptions. Understanding and mitigating these risks are key for organizational security.
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Buffer Funds

Market Sentiment • 393 implied HN points • 30 Jul 23
💰 Finance Investing ETFs Market Strategies Risk management
  1. With derivatives, you can create a portfolio that never loses money and still invest in stocks.
  2. Buffer funds offer a way to protect your capital from losses while capping your potential gains.
  3. These strategies were traditionally expensive and complex, but are now more accessible through ETFs.

Don't Plan For the Worst

The Radar • 19 implied HN points • 10 Mar 24
💼 Business Strategic Planning Resource Allocation Leadership Risk management
  1. Planning for the worst may not be the best strategy for intelligently allocating resources.
  2. Organizations often over-invest resources in low-percentage operational scenarios, leading to unnecessary pressure.
  3. Quantify the costs and payoffs of different scenarios to ensure that resources are mapped to value and not solely based on worst-case fears.

Value Investors: How To "Buy & Hold" Forever Despite ST Volatility

Value Investing Substack • 294 implied HN points • 25 Jun 23
💰 Finance Investing Portfolio Management Value investing Market volatility Risk management
  1. Value investors can create a low-volatility portfolio by combining Factor Investing with Value Investing
  2. Implementing a diversified portfolio of 20 stocks with >1:3 risk:reward can provide a 15% CAGR while minimizing downside volatility
  3. Staying disciplined, identifying stocks with high risk:reward ratio, and staying in cash until finding suitable opportunities are key strategies for value investors

The Dying Banks and the Singularity

The Dollar Endgame • 339 implied HN points • 12 May 23
💰 Finance Banking Investments Market Regulations Risk management
  1. There is a financial crisis brewing with banks collapsing and facing liquidity issues, leading to a rapid withdrawal of funds from the system.
  2. Banks like Silicon Valley Bank have made risky investments with high-end clients, creating vulnerabilities in the financial sector.
  3. The Federal Reserve's policies have inadvertently caused a drain on traditional banks, pushing money into shadow banks and triggering a potential chain of bank failures.

Bonds bail us out

Known Unknowns • 235 implied HN points • 26 Jun 23
💰 Finance Investing Economy Insurance Work Risk management
  1. Bonds can be a good financial tool for managing risk and long-term investment.
  2. Questioning traditional financial theories, like investing in long-term bonds, can lead to insights on managing pension funds.
  3. Work-from-home trends may not be sustainable in the long term due to the importance of workplace relationships and culture.

The Macro Story of SVB Isn't Just About the Fed

Without Warning • 196 implied HN points • 05 Jul 23
💼 Business Banking Regulation Economics Risk management Innovation
  1. SVB's business model relies heavily on uninsured deposits to support the innovation sector.
  2. The narrative around SVB's challenges involves blaming the Fed for its interest rate policies and the impact on bank assets and liabilities.
  3. The uniqueness of SVB's model in banking the Silicon Valley innovation economy raises questions about regulatory changes and potential consequences for American innovation.

Fearing the sheriff more than the bandits

Deploy Securely • 157 implied HN points • 21 Jul 23
🕹 Technology Cybersecurity Compliance Risk management Government Regulation Data Protection
  1. The fear of repercussions from authorities like prosecutors and regulatory agencies is often greater than that from hackers.
  2. Cybersecurity professionals and their teams face severe consequences for non-compliance, even if the breach was not entirely their fault.
  3. A flawed liability regime and focus on performative compliance rather than actual security measures contribute to the prioritization of checking boxes over protecting data.

How to define risk appetite and tolerance

Deploy Securely • 157 implied HN points • 12 Jul 23
🕹 Technology Cybersecurity Risk management Compliance Business impact
  1. Risk appetite is the baseline level of cybersecurity risk an organization is willing to accept.
  2. Risk appetite should be defined in fungible units like dollars or engineer-hours, not security-specific terms.
  3. Risk tolerance is the speed at which an organization must address risk above the established appetite to avoid compliance issues.

In Property Insurance, Climate Change is Everything

Equal Ventures • 19 implied HN points • 24 Jan 24
💰 Finance Insurance Risk management Climate change Startups
  1. Insurers must adapt quickly to the impacts of climate change on property insurance, as changing weather patterns are leading to more natural catastrophe events and heavier losses.
  2. The property insurance market is experiencing shrinking margins, complex regulations, and increasing premiums due to climate change impacts, leading to carriers pulling back policies in high-risk areas.
  3. There is a need for more innovative approaches in underwriting and risk management, moving away from relying solely on historical zip code data and towards tailored risk assessment in the face of evolving weather risks.

Too Big To Fail

The Last Bear Standing • 160 implied HN points • 10 Mar 23
💰 Finance Banking Bonds Liquidity Regulation Risk management
  1. In the mid-2000s, banks faced a significant problem with growing leverage and inadequate cash reserves.
  2. The 2008 financial crisis led to emergency bailouts to address liquidity issues in the banking sector.
  3. While regulations and liquidity injections have reduced the risk of widespread liquidity crises in large U.S. banks, the 'too-big-to-fail' problem persists in the broader financial system.

Faith and Finance

We're Gonna Get Those Bastards • 8 implied HN points • 24 Feb 24
💰 Finance Investing Markets Faith Risk management
  1. Being a skeptic is common, but having faith can lead to more financial success in the market.
  2. Acting on faith can sometimes bring greater returns than waiting for concrete evidence in financial decisions.
  3. Faith can reduce fear and stress when making trades in the market, providing a sense of assurance even when outcomes are uncertain.