The hottest Risk management Substack posts right now

And their main takeaways
Category
Top Finance Topics
We're Gonna Get Those Bastards 8 implied HN points 24 Feb 24
  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.
Deploy Securely 98 implied HN points 09 Jun 23
  1. The NIST AI Risk Management Framework provides a governance, risk, and compliance framework for artificial intelligence.
  2. The document highlights the challenges in AI risk management, including identifying and cataloging risks, emergent risks, and availability of reliable metrics.
  3. The criteria to evaluate AI systems include validity, safety, security, accountability, transparency, privacy, and fairness in managing harmful bias.
Gad’s Newsletter 50 implied HN points 18 Sep 23
  1. During COVID, global supply chains faced disruptions from lockdowns, shortages, and transportation issues.
  2. Companies reduced the number of countries they sourced from but maintained the same number of suppliers.
  3. Businesses adapted ordering patterns by increasing shipment size and volume while decreasing frequency, influenced by the pandemic.
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The Sunday Morning Post 78 implied HN points 09 Jul 23
  1. Bank runs can still happen today, triggered by various factors like social media rumors and liquidity issues
  2. The FDIC, established in 1933, guarantees a certain amount of depositors' funds to prevent bank runs and provide stability to the banking system
  3. Modern banking faces new challenges like swift fund transfers, online activism affecting stock prices, and the need for regulators to adapt to the changing landscape
Axial 7 implied HN points 26 Feb 24
  1. Investing success involves focusing on undervalued securities with a margin of safety to protect against errors and volatility
  2. Prioritize avoiding losses over seeking speculative gains; learn from others' mistakes to compound returns over time
  3. Value investing requires independent thinking, estimating intrinsic value, and maintaining a margin of safety to achieve excess returns
Wetware Snippets 5 implied HN points 11 Mar 24
  1. Modularization is key in project management. Breaking down a large project into repeatable modules simplifies delivery.
  2. Different projects have distinct distribution patterns, impacting their likelihood of success. Thin-tailed distribution projects are more likely to be on time and budget.
  3. Lessons from the book can be applied to personal projects like kitchen renovation or holiday planning. It's a valuable read for project managers and those tackling significant endeavors.
Product Mindset's Newsletter 11 implied HN points 28 Jan 24
  1. Scenario planning helps organizations prepare for a range of possibilities in an uncertain future.
  2. The scenario planning process involves steps like predicting future drivers, understanding impacts, and gauging effects of scenarios.
  3. Best practices for scenario planning include focusing on key uncertainties, keeping it simple, and fostering a culture of resilience.
Behavioral Value Investor 89 implied HN points 30 Apr 23
  1. Doubling down on investments can be risky, make sure to assess potential downsides.
  2. Even successful investors can make mistakes and suffer losses by doubling down.
  3. Before doubling down on an investment, consider factors like financial leverage, funding requirements, and management strength.
The Data Score 59 implied HN points 28 Jun 23
  1. AIS vessel tracking data can predict China's exports, monitor global trade, and understand real-time economic activity.
  2. Data cleansing is crucial for turning raw AIS data into actionable insights. Cleaning the data involves filtering out anomalies and ensuring accuracy.
  3. It's important to consider limitations like the exclusive focus on large commercial ships, uncertainties in cargo data, and vessel behavior anomalies when analyzing AIS data.
The Data Score 59 implied HN points 22 Jun 23
  1. Institutional investors need to find surprising insights in data but also be skeptical of them to ensure accuracy and avoid errors.
  2. When using alternative data to make predictions, it's crucial to verify if the insights answer the right questions and differ from the market consensus.
  3. Digging into the data through various methods like independent validation, error margin assessment, and data integrity checks is essential for investors to ensure the reliability of surprising insights.
Apricitas Economics 64 implied HN points 25 Mar 23
  1. Credit Suisse faced major financial issues over several years, with losses, leaked data, and fines leading to its demise.
  2. Swiss authorities forced Credit Suisse to merge with UBS to prevent a public collapse and global financial crisis.
  3. The fallout from Credit Suisse's fall includes impacts on European banks, market confidence, and central bank efforts to stabilize the financial system.
Net Interest 24 implied HN points 13 Oct 23
  1. Participants in a study about managing financial risk did not fully exploit their edge in a coin-flipping game.
  2. Proper position sizing is crucial in gambling and financial markets to maximize returns and manage risk effectively.
  3. Understanding and applying formulas like Kelly's criterion can help in making optimal bets and improving performance in investing.
Net Interest 34 implied HN points 18 Aug 23
  1. The collapse of Long-Term Capital Management had significant implications for the finance industry.
  2. One possible reason for LTCM's downfall was overreliance on sophisticated modeling.
  3. Although LTCM had managed its leverage tightly, it still faced a perilous downfall due to a combination of factors.
The Rotten Apple 42 implied HN points 24 Apr 23
  1. Risk management in food safety is more of a political process than a scientific one.
  2. Most wasabi paste we consume is fake, made with horseradish, but still has antibacterial properties.
  3. Synthetic biology in food production and the term HFSS (high in fat, salt, sugar) are emerging concepts in food science.
Without Warning 39 implied HN points 19 Feb 23
  1. The purpose of stress tests for banks in peacetime is not necessarily to predict future crises, but to ensure banks have enough capital and that the tests are tough and variable.
  2. It's important for stress test scenarios to change and remain tough to prevent banks from manipulating their capital levels and misrepresenting their financial health.
  3. The public stress test process during peacetime may not have a significant impact on capital allocation to the banking sector, unlike crisis-time stress tests.
Nongaap Investing 37 implied HN points 22 Mar 23
  1. Silicon Valley Bank faced a significant spike in insider loans, raising concerns about VC conflicts of interest and Director independence.
  2. Approximately 38% of SVB's reported incremental venture debt went to start-ups affiliated with Directors, prompting questions on underwriting transparency.
  3. The lack of disclosure in the Proxy Statement and the concentration of loans to insider-affiliated start-ups suggest potential VC conflicts of interest impacting risk management.
Apricitas Economics 32 implied HN points 05 Jun 23
  1. After the collapse of Silicon Valley Bank, the American banking industry is adapting by relying less on uninsured deposits and more on alternative funding methods like borrowings.
  2. Deposits have restabilized post-SVB crisis, but banks are facing challenges with tight lending standards due to renewed economic pessimism and liquidity concerns.
  3. Banks are cautiously navigating post-SVB crisis by reducing reliance on uninsured deposits, managing securities losses, and addressing liquidity worries amid tighter monetary policy.
reedmolbak 2 HN points 05 Mar 24
  1. Buying the dip strategy involves waiting for an asset price to drop below a specific threshold before purchasing it, but simulation data shows that this strategy is usually less effective than buying regularly.
  2. When dealing with volatile assets, buying the dip can be beneficial if the asset underperforms in the median case but significantly overperforms occasionally, providing exposure without heavy losses.
  3. For stable assets or normal investors, buying regularly is usually the best strategy as it requires less effort and is generally more effective than trying to time the market by waiting for price dips.
Apperceptive (moved to buttondown) 16 implied HN points 22 Sep 23
  1. Autonomous cars struggle with handling left turns across traffic due to the difficulty in predicting oncoming vehicles' movements.
  2. Human drivers navigate left turns based on social interactions and a higher tolerance for risk compared to autonomous vehicles.
  3. Acceptance of the risks involved in traditional vehicles influences societal readiness for autonomous vehicles, with potential consequences.
Technology Made Simple 79 implied HN points 29 Jul 22
  1. Food delivery business is unprofitable globally despite high fees; Zomato suffered major losses without solid plans.
  2. Zomato's acquisition of Blinkit with a massive cash burn was not beneficial due to lack of established cash flows.
  3. Investors should be cautious of hype; Zomato's crash led to retail investors facing significant losses.
Technology Made Simple 59 implied HN points 08 Oct 22
  1. The economy goes through cycles of growth (boom) and contraction (bust), influenced by optimism and greed.
  2. Tech industry is more vulnerable to boom-bust cycles due to its rapid pace, scalability, and complexity, making it hard to predict and invest in.
  3. To survive economic fluctuations, it's important to build resilience by staying abreast of skills, having emergency funds, and not panicking.
The Product Channel By Sid Saladi 23 implied HN points 25 Jun 23
  1. Rapid Prototyping is key in product management to test ideas quickly and improve solutions over time.
  2. Prototyping involves creating visual mock-ups, gathering user feedback, and refining the solution based on insights.
  3. Having the right mindset and embracing an experimental approach is crucial for successful rapid prototyping.
Fintech Business Weekly 2 HN points 23 Feb 24
  1. Lineage Bank faced regulatory issues with the FDIC due to oversight failures in its banking-as-a-service partnerships.
  2. The consent order from the FDIC requires Lineage Bank to make significant changes in its management, risk assessment, and operational practices.
  3. The impact of Lineage Bank's BaaS wind down and the FDIC order on Synapse, Synctera, and their fintech clients is not yet clear.
Klement on Investing 2 implied HN points 13 Feb 24
  1. Private equity managers have unique challenges in balancing portfolio concentration for high returns and diversification to manage risk.
  2. Private equity portfolio characteristics differ from those of listed equity funds, with smaller, riskier holdings often generating the most alpha.
  3. Performance in private equity is less about individual deals and more about portfolio construction, where fund manager skill plays a significant role.
Equal Ventures 19 implied HN points 01 Jun 23
  1. Venture capital industry can exhibit herd behavior and be consensus-driven, deviating from contrarian thinking.
  2. Investors chasing beta during market peaks can lead to significant losses when the market corrects, highlighting the importance of sound investment strategies.
  3. Sticking to core investment sectors, avoiding chasing trends, and focusing on long-term conviction can lead to sustainable returns independent of market cycles.