The hottest Risk management Substack posts right now

And their main takeaways
Category
Top Finance Topics

I SOLDI IN BANCA

ANDREA CECCHI Newsletter • 176 implied HN points • 09 Feb 24
💰 Finance Risk management
  1. People have lost their life savings trusting banks - it's not a safe place for all your money.
  2. The 2008 financial crisis led to a wave of bank failures, and in 2023 banks are again under stress.
  3. It's important to understand the three fundamental truths of the modern banking system before depositing money in a bank.

Security Is A Useless Controls Problem

Security Is • 59 implied HN points • 29 May 24
🕹 Technology Risk management
  1. Many security controls are useless, wasting resources and time. It's crucial to understand why you're implementing a control to avoid just following the crowd.
  2. If you can't explain why a security control is needed in a simple way, it's likely not very useful. Good controls should have clear reasons behind them.
  3. Wasting time on unnecessary controls can harm everyone in the industry. Focus on meaningful security measures to make better use of limited resources.

Resilient Cyber Newsletter #2

Resilient Cyber • 39 implied HN points • 25 Jun 24
🕹 Technology Risk management
  1. Companies need to be careful about how much they share regarding their cyber insurance. Revealing this information might make them targets for attackers.
  2. The role of a CISO is changing and becoming more business-focused. Many believe they should focus on leadership rather than just technical tasks.
  3. AI can help improve cybersecurity, but there are also concerns about its use by attackers. It's important to explore how AI can enhance our defenses.

The Bear Cave #261

The Bear Cave • 396 implied HN points • 16 Feb 25
💼 Business 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.

So, you messed up.

DeFi Education • 1019 implied HN points • 01 Dec 22
🔮 Crypto Risk management
  1. Everyone makes mistakes, especially in investing. It's important to learn from them and manage risk so you can keep moving forward.
  2. If you're struggling financially, focus on increasing your cash flow, cutting expenses, and working hard. It's important to adapt to the tough times.
  3. Don't assume that past market conditions will come back. Prepare for the future by managing risks and being smart about your investments.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

irritating arithmetic

Dan Davies - "Back of Mind" • 176 implied HN points • 31 Jan 24
💰 Finance Risk management
  1. Marginal costs and risks don't add up to the total, causing problems in decision-making.
  2. Regulatory capital requirements are not usually binding and can be misleading in banking.
  3. Banks often rely on regulatory handbooks instead of thorough internal risk assessments.

The Dying Banks and the Singularity

The Dollar Endgame • 339 implied HN points • 12 May 23
💰 Finance 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.

The Business of Venture Capital

Insight Axis • 296 implied HN points • 05 Nov 23
💼 Business Risk management
  1. Venture capital began from the dot-com bubble era, where tech entrepreneurs set up investment firms to fund new, high-growth technology companies.
  2. VCs specifically invest in early stage companies with potential for rapid growth and huge profits, aiming to 10x their investment in 5 years.
  3. Venture capital faces challenges like misaligned incentives, high-risk investments, and the need to balance finding unicorns without funding too many duds.

Unknown and Unknowable

Lewis Enterprises • 334 implied HN points • 08 Oct 23
💰 Finance 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.

Not a Lehman Moment

Diane Francis • 639 implied HN points • 20 Mar 23
💰 Finance Risk management
  1. The collapse of Silicon Valley Bank (SVB) wasn't as dramatic as Lehman Brothers in 2008, but it did show flaws in the banking system. Unlike Lehman, SVB's issues came from poor management rather than widespread systemic problems.
  2. Government reactions were swift this time, which helped contain the fallout. They extended deposit insurance to all SVB depositors to prevent panic, but this crisis highlighted the need for stricter banking regulations.
  3. The financial market is in turmoil again, and more banks might struggle due to rising interest rates. While this isn't a repeat of 2008, it serves as a reminder that there need to be safeguards in place to protect the economy.

Friday Macro Sitch Watching: The Grit from the Sandstorm Is Fierce!

Brad DeLong's Grasping Reality • 207 implied HN points • 06 Jun 25
💰 Finance Risk management
  1. In uncertain times, it's wise to be cautious and build safety instead of taking big risks. Waiting and watching can help us avoid bad decisions when the future is unclear.
  2. The economy is facing challenges like stagflation, which means slow growth and high prices. It's hard to tell if we're headed for a recession or if things will get better soon.
  3. Some people still have hope for a positive change, similar to past economic recoveries. They believe that chaos could lead to new growth opportunities, but there's a lot of uncertainty about what will happen next.

The Year-End Money Market Storm

Concoda • 464 implied HN points • 19 Dec 24
💰 Finance 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.

Overview of Portfolio Construction and Risk Management, Part 2

DeFi Education • 699 implied HN points • 03 Mar 23
💰 Finance Risk management
  1. Human emotions like greed and fear can affect investing decisions. People often buy high when they're greedy and ignore good opportunities when they're scared.
  2. Even experienced money managers can make mistakes by following trends instead of sticking to their strategies. They sometimes buy at the peak instead of the bottom.
  3. Understanding these emotional swings can help in better portfolio management. It's important to recognize how emotions can lead to poor financial choices.

The Dark Art of Short Selling (+ how to find shorts)

DeFi Education • 619 implied HN points • 22 Mar 23
💰 Finance Risk management
  1. Short selling lets you profit from a decrease in asset prices, but it comes with high risks. If prices rise instead of fall, you could lose a lot of money.
  2. You can short sell through different platforms and strategies, including centralized exchanges, which might be safer but also have their own risks. It's important to manage your risk and not invest more than you can afford to lose.
  3. Knowing how short selling works can help you make better decisions in the market, even if you don't plan to short yourself. It can guide you in recognizing when to hold or sell your investments.

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

Value Investing Substack • 294 implied HN points • 25 Jun 23
💰 Finance 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

Do emerging and frontier markets diversify?

Klement on Investing • 1 implied HN point • 03 Mar 26
💰 Finance Risk management
  1. Correlations between developed, emerging, and frontier markets rise as the investor’s time horizon lengthens, so diversification benefits shrink over longer horizons.
  2. Despite higher long-run correlations, optimal minimum-variance portfolios still hold a meaningful share of emerging and frontier markets—typically around 20% or more—even at the longest horizon tested.
  3. Typical investor allocations to emerging markets (around 10–15%) are likely lower than the allocation suggested by these optimal portfolios, implying many investors may be underinvested.

Going for Broke

The Better Letter • 275 implied HN points • 06 Oct 23
💰 Finance Risk management
  1. In a coin-flipping experiment, even financially savvy individuals struggled with optimal betting strategies.
  2. The world is far more random than we realize, affecting markets and investments unpredictably.
  3. Probabilistic strategies can help in decision-making, especially when human biases lead to suboptimal choices.

The Philosophy of Money

We're Gonna Get Those Bastards • 8 implied HN points • 21 Jan 26
💰 Finance Risk management
  1. Money is a tool to buy comfort and freedom, and having enough makes small daily worries disappear.
  2. Save and invest consistently with delayed gratification—anyone can build wealth by living below their means and starting early.
  3. Manage risk by hedging against catastrophic losses and being realistic about investing, since preserving capital can be more important than chasing higher returns.

The LIBOR scandal, part 1: background

The Jolly Contrarian • 79 implied HN points • 08 Apr 24
💰 Finance Risk management
  1. Banks have structural interest rate risk, which they manage by borrowing at a low rate and lending at a high one.
  2. The LIBOR rate was created as a benchmark for banks to set their interest rates and trade standardized instruments.
  3. Interest rate swaps changed the game by allowing banks to trade interest rates with counterparties, impacting how they managed their structural interest rate risk.

Data Exfiltration from Slack AI via indirect prompt injection

PromptArmor Blog • 604 HN points • 20 Aug 24
🕹 Technology 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.

Overview of Portfolio Construction and Risk Management, Part 2 of 2

DeFi Education • 579 implied HN points • 05 Mar 23
💰 Finance Risk management
  1. Portfolio construction requires understanding different frameworks and methods to organize investments effectively. It's important to choose a strategy that fits your financial goals.
  2. Using leverage can be useful in certain situations, but it also increases risk. It's essential to know when it's appropriate to leverage your investments.
  3. Controlling risk with position sizing is crucial for managing your portfolio. By adjusting the size of your investments, you can better protect yourself against losses.

A 5 Step Process to Improve Your Investment Acumen With Zero Risk

DeFi Education • 919 implied HN points • 07 Sep 22
💰 Finance Risk management
  1. To get better at investing, you need to practice regularly and learn from different situations. The more you engage with investments, the better you'll become.
  2. Gather data from various sources to form a complete understanding of an investment. Don't just look at numbers; think about what they mean and how they relate to the market.
  3. After creating your investment plan, it's key to track how your decisions pan out. Reflect on what you did right or wrong to keep improving your skills over time.

Quant Letter: December 2025, Week-2

The Parlour • 21 implied HN points • 14 Dec 25
💰 Finance Risk management
  1. Reinforcement learning and other AI methods are increasingly used for investment decisions, portfolio optimization, and pricing, with a clear push toward simpler, explainable, and reliable strategies rather than black-box complexity.
  2. Researchers are building better risk models for tail events, jumps, and volatility calibration to capture heavy-tailed returns and interest-rate dynamics, aiming for more accurate pricing and stable capital allocation under stress.
  3. Open-source tools and model-evaluation frameworks are accelerating automation and workflow in quant finance, but the rise of algorithmic and passive trading is also heightening systemic risks, especially in emerging markets.

CISA and NCSC's Take on Secure AI Development

Resilient Cyber • 179 implied HN points • 01 Dec 23
🕹 Technology Risk management
  1. CISA and NCSC released guidelines for secure AI development that focus on unique security risks and the responsibilities of both AI providers and users. It's important for organizations to understand who is responsible for protecting AI systems.
  2. The guidelines emphasize practices like threat modeling and raising awareness of AI risks during the design phase. This helps organizations build secure systems by understanding potential threats upfront.
  3. Security doesn't stop at deployment; ongoing monitoring and incident response are crucial for maintaining safe AI operations. Companies need to keep an eye on how their AI systems behave and be ready to respond to any security incidents.

Bonds bail us out

Known Unknowns • 235 implied HN points • 26 Jun 23
💰 Finance 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.

SBOM Management

Resilient Cyber • 159 implied HN points • 18 Dec 23
🕹 Technology Risk management
  1. SBOMs, or Software Bill of Materials, list components of software products. They help organizations know what parts make up their software, which is important for security.
  2. The NSA offers guidelines for managing SBOMs, emphasizing the need for both software suppliers and consumers to take security seriously. Suppliers should be transparent and accountable, while consumers should ensure their suppliers follow good security practices.
  3. Organizations need effective SBOM tools that can manage and analyze software components, detect vulnerabilities, and facilitate easy reporting. These tools should also be user-friendly to help teams work efficiently.

What Exactly Is Venture Capital?

Concepts of Finance 🧠 • 279 implied HN points • 15 Aug 23
💰 Finance Risk management
  1. Venture capital is a type of funding provided to early-stage companies that have high growth potential. It's different from private equity, which usually invests in more mature companies.
  2. Many startups need venture capital to expand, but it's not the main way new businesses get funding. A lot of startups rely on personal savings or small loans instead.
  3. There are common myths about venture capitalists, such as their wealth or ability to innovate. In reality, not all VCs are rich and many investments don't yield huge returns.

Overview of Portfolio Construction & Risk Management - Owl and Iguana

DeFi Education • 1398 implied HN points • 12 Nov 21
🔮 Crypto Risk management
  1. When building a crypto portfolio, it's important to balance between keeping your money safe, growing your investments, and managing your emotions. This helps ensure you're making smart decisions.
  2. It's smart to have a good chunk of your portfolio in Bitcoin and Ethereum before diving into other high-risk projects. This way, you can still benefit from their growth while taking some risks with other assets.
  3. Understanding the volatility of your investments can help you decide how much to invest in each asset. More volatile assets might require smaller investments to manage risk and avoid big losses.

Sierra's AI Strategy in a Nutshell

Enterprise AI Trends • 126 implied HN points • 18 Jun 25
🕹 Technology Risk management
  1. Sierra is an AI agent platform focused on building customer-facing AI interactions. It aims to take over all customer communications for businesses, starting with support.
  2. The success of Sierra could influence how other AI startups are viewed, especially those targeting the enterprise market. If Sierra struggles, it might signal challenges for similar companies.
  3. Sierra has a solid foundation with experienced founders and strong funding, but it faces risks like change management and vendor lock-in when companies consider using its services.

Yield Farming Model v1.0

DeFi Education • 999 implied HN points • 21 Apr 22
🔮 Crypto Risk management
  1. Providing liquidity is not just free money; it's an investment. You need to know the risks and possible rewards before jumping in.
  2. To really get into yield farming, it's helpful to understand liquidity providing first. It's good to have some hands-on experience with it.
  3. This discussion builds on previous knowledge, so it's a bit more advanced. Make sure you're comfortable with the basics before diving deeper.

Good value governance

The Uncertainty Mindset (soon to become tbd) • 119 implied HN points • 12 Jan 24
🇺🇸 U.S. Politics Risk management
  1. There's a lot of uncertainty in today's world, not just risk. This means leaders need to understand how these two concepts differ to make better decisions.
  2. Mixing up uncertainty with risk can lead to poor choices and wasted resources. It's important to clarify what you're dealing with to avoid making mistakes.
  3. When leaders are clear about uncertainty, they can use their limited resources more effectively. Strategies that focus on uncertainty tend to be cheaper and work better than traditional risk management.

OWASP LLM AI Cybersecurity & Governance Checklist

Resilient Cyber • 79 implied HN points • 06 Mar 24
🕹 Technology Risk management
  1. Organizations need to understand the unique risks of using Large Language Models (LLMs) and Generative AI, and they should create clear strategies for managing these risks.
  2. Having an AI asset inventory is crucial so that companies know what AI tools they are using and who is responsible for them.
  3. Safety training for employees on AI tools can help prevent misuse and create a culture of transparency within the organization.

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

Without Warning • 196 implied HN points • 05 Jul 23
💼 Business Risk management
  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.

Biological Weapons Convention: Challenges, Limitations, Opportunities, and Approaches

Who is Robert Malone • 6 implied HN points • 29 Jan 26
🌍 World Politics Risk management
  1. The Biological Weapons Convention needs updating to address modern biotechnology and catastrophic risks, but sweeping treaty reform is politically unlikely so progress will be incremental and pragmatic.
  2. Practical reforms include broadening the BWC to cover accidents and dual-use research, creating global biosafety standards and mandatory reporting or verification, and establishing a permanent scientific body plus preparedness and capacity‑building to manage low-probability, high-consequence risks.
  3. Artificial intelligence can bolster the Convention by providing early warning, monitoring research trends, scenario modeling, and verification-by-analysis, but it must be deployed transparently and multilaterally as a support tool rather than a substitute for political and legal action.