The hottest Risk management Substack posts right now

And their main takeaways
Category
Top Finance Topics

European equities won’t provide safety if US bubble bursts

Klement on Investing • 3 implied HN points • 12 Dec 24
💰 Finance Investing Market Analysis Equities Economic Trends Risk management
  1. If the US stock market crashes, it can impact European markets too. Investors shouldn't expect safety by moving their money to Europe.
  2. Currently, US stocks are very expensive, which raises concerns about a potential market correction.
  3. A downturn in the US could be more harmful to Europe than past market crashes, like the tech bubble in 2000.

Walk Your Talk

do clouds feel vertigo? • 1 HN point • 31 Aug 24
💰 Finance Market Analysis Economic Trends Investment Strategies Behavioral Finance Risk management
  1. Navigating emotions in finance is tough. Just like a story, the market has ups and downs, often driven by fear and greed.
  2. Understanding market patterns can help you make better choices. Key events, like earnings reports, can change how stocks perform quickly.
  3. It's smart to think about who benefits from market movements. Often, the loudest voices can mislead you, so keep a clear perspective.

Careers: Aligning Stated and Revealed Preferences

Moral Mayhem Podcast • 19 implied HN points • 13 Mar 24
💼 Business Careers Decision-making Success Psychology Risk management
  1. Many people think their career paths are more straightforward than they actually are. It's okay to change jobs if you're not happy, as often the risks are lower than you think.
  2. People sometimes stay in jobs longer than they should because they're worried about making a change. Remember, doors don't completely close and new opportunities often arise.
  3. Anxiety about career choices can feel overwhelming because of how much we tie our value to work. However, this fear usually doesn't match the reality of risk when trying something new.

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.

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.
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Day 2: A Comedy of Errors

Malt Liquidity • 6 implied HN points • 04 Nov 24
💰 Finance Trading Investment Market Analysis Risk management Simulations
  1. Following rules can be tough, especially in trading. Straying from common advice can lead to mistakes, like taking on too much risk or not using stop losses.
  2. Taking on a large position without proper planning can result in big losses. It's essential to manage your trade size and understand the potential consequences of your decisions.
  3. Trading simulations can be a fun way to learn, but they also have strict limits. It's important to adapt your strategies to fit the rules of the system you're using.

Top 10 OSS Risks

Resilient Cyber • 99 implied HN points • 13 Mar 23
🕹 Technology Software Security Development Open Source Risk management
  1. Open Source Software (OSS) is widely used, making up a large part of many software applications. However, it's essential to be aware of the risks it poses, as vulnerabilities in OSS can impact many users simultaneously.
  2. One major risk is the compromise of legitimate OSS packages, where attackers can hijack code or repositories to insert malicious elements, which can then spread to organizations using that software.
  3. Another concern is outdated or unmaintained OSS, which can lead to security issues if the software isn’t updated regularly. Organizations need to keep track of the OSS they use and ensure it's actively maintained.

European stocks offer earnings stability in surprising places

Klement on Investing • 1 implied HN point • 08 Jan 25
💰 Finance Investing Stocks Market Trends Economic Analysis Risk management
  1. European stocks can provide surprisingly stable earnings even in tough times. It's good to look for companies that have shown consistent growth before.
  2. In this uncertain economic climate, having a strategy can help investors feel more secure. Focusing on steady performers might be a smart approach.
  3. Many investors are looking for ways to adapt and manage risks this year. Finding reliable stocks in Europe could be part of the answer.

The Combined Power of SAST and Threat Modeling

Resilient Cyber • 99 implied HN points • 07 Mar 23
🕹 Technology Cybersecurity Software Information Security Risk management
  1. Using SAST tools helps find security problems in an app's code. It's important to have tools that are easy to use and can be customized based on your needs.
  2. Threat modeling is about figuring out what security risks exist and how likely they are to happen. It helps you focus on the most important threats to your applications.
  3. Combining SAST and threat modeling makes both methods stronger. By knowing your threats, you can use SAST better to fix specific vulnerabilities in your software.

Alternative Investment Guide #3 - Equity Crowdfunding

Concepts of Finance 🧠 • 59 implied HN points • 25 Jul 23
💰 Finance Investing Crowdfunding Equity Risk management Startups
  1. Equity crowdfunding lets everyday people invest in startups by buying shares. This means you can own a small part of a new company, hoping it grows in value over time.
  2. Investors can make money through equity ownership, dividends, or selling their shares later if the company does well. However, there's always a risk of losing your investment since many startups fail.
  3. Before investing, it's important to research the company and its team, as well as understand the risks involved. Doing your homework can help you find promising investments.

A look at the DoD's Zero Trust Strategy

Resilient Cyber • 119 implied HN points • 27 Nov 22
🕹 Technology Cybersecurity Information Systems Digital Transformation Risk management
  1. The Department of Defense is adopting a Zero Trust strategy to improve security by not automatically trusting any user or device, and it aims to fully implement this approach in five years.
  2. Key goals of the strategy include fostering a culture of Zero Trust within the organization, accelerating technology adoption, and ensuring DoD systems are secure and well-defended.
  3. Success relies on collaboration across all levels of the DoD, as well as proper funding and resources to support the technology and cultural shifts needed for this new security model.

✅ Using AI for tactical and strategic applications in public relations

Wadds Inc. newsletter • 39 implied HN points • 13 Oct 23
💼 Business Public Relations AI Technology Content creation Strategic Planning Risk management
  1. AI tools can help public relations pros improve their writing by checking spelling and grammar, making them better at their jobs. Many people already use these tools without realizing how much they help.
  2. Focusing on using AI for just generating content can ignore its potential in strategy and management, which could provide even bigger benefits for PR practices.
  3. While AI can save a lot of time and make work easier, there's a risk of spreading misinformation, so it's important to use AI wisely and question its outputs.

Peacetime Bank Stress Tests: Who's That For?

Without Warning • 39 implied HN points • 19 Feb 23
💰 Finance Banking Capital Regulation Risk management Investors
  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.

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.

Enter the Matrix

Resilient Cyber • 79 implied HN points • 13 Feb 23
🕹 Technology Cybersecurity Tooling Frameworks Risk management
  1. The Cyber Defense Matrix helps organizations understand their security tools better. It allows teams to see what tools they have, find overlaps, and spot gaps in their defenses.
  2. Cybersecurity tool sprawl is a big issue where companies use many different tools, often without fully understanding how well they work. This can make it harder to respond to threats effectively.
  3. Investing more in technology than in the people and processes can lead to a weaker security response when incidents occur. It's important to balance resources across technology, people, and processes.

Zomato fails to deliver [Finance Fridays]

Technology Made Simple • 79 implied HN points • 29 Jul 22
💰 Finance Stock Market Investing Business Strategies Risk management Entrepreneurship
  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.

What Are The Dangers And Rewards Of Doubling Down On Your Investments?

Behavioral Value Investor • 89 implied HN points • 30 Apr 23
💰 Finance Investments Risk management Behavioral Finance Value investing Financial Markets
  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 Boom Bust Cycle and how it affects tech[Finance Fridays]

Technology Made Simple • 59 implied HN points • 08 Oct 22
💰 Finance Investing Tech industry Market Impact Risk management
  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.

How did COVID (Really) Shape Supply Chains?

Gad’s Newsletter • 50 implied HN points • 18 Sep 23
💼 Business Supply Chains Globalization Risk management Logistics Trade
  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.

A look at the Open Software Supply Chain Attack Reference (OSC&R)

Resilient Cyber • 59 implied HN points • 21 Feb 23
🕹 Technology Cybersecurity Software Supply Chain Risk management Frameworks
  1. The Open Software Supply Chain Attack Reference (OSC&R) is a tool designed to help understand software supply chain security risks. It provides a framework to assess various tactics that attackers may use.
  2. One important concept introduced by OSC&R is the Pipeline Bill of Materials (PBOM), which gives a detailed view of everything that happens to a piece of software from start to finish. This helps organizations see risk factors at every stage of the software's life.
  3. Security is a big concern across different areas like container security, open source software, and cloud security. Each area has specific practices to follow to help protect against potential threats.

Going Down With the Ship

Resilient Cyber • 39 implied HN points • 31 May 23
🕹 Technology Cybersecurity Software Development Risk management
  1. Many organizations have a huge number of open vulnerabilities, but they struggle to fix them fast enough. This creates a risky situation where bad actors can exploit these weaknesses quickly.
  2. Despite new tools and approaches, cybersecurity continues to lag behind the speed of threats. Adding more security tools doesn't necessarily make things safer and can actually create confusion and overload for teams.
  3. Security should be treated as an ongoing process, not just something to buy or check off a list. If we keep doing the same thing without real change, we’ll keep facing the same problems.

#2: Degrees of freedom

The Uncertainty Mindset (soon to become tbd) • 379 implied HN points • 13 Nov 19
💼 Business Management Team Dynamics Culinary Arts Risk management
  1. To handle unexpected problems, a team needs the freedom to act. This freedom helps them adapt and respond to changing situations.
  2. Giving people freedom in their work can lead to mistakes, but it also allows for creative solutions. Balancing freedom and structure is important.
  3. Organizations that embrace both risks and uncertainties are often better at dealing with surprises. This means they can thrive even when things don’t go as planned.

The Death of Credit Suisse

Apricitas Economics • 64 implied HN points • 25 Mar 23
💰 Finance Banking Global Finance Financial Regulations Risk management Financial Markets
  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.

CISA’s Take on Vulnerability Prioritization and Management

Resilient Cyber • 59 implied HN points • 22 Nov 22
🕹 Technology Cybersecurity Vulnerability Management Automation Software Risk management
  1. CISA emphasizes using machine-readable formats for security advisories to help organizations quickly understand and respond to vulnerabilities. Automating this process can speed up how fast companies act against threats.
  2. The Vulnerability Exploitability eXchange (VEX) helps organizations know if a vulnerability affects their products. This allows them to focus on the most critical risks rather than wasting time on ones that don't impact them.
  3. CISA's Stakeholder Specific Vulnerability Categorization (SSVC) helps organizations prioritize which vulnerabilities to address based on impact and urgency. It guides decision-making with a structured approach to risk management.

Degenesis: How to source memes to trade, perform DD, and size your bets

Boltzmann Soul • 2 HN points • 28 Jun 24
💰 Finance Cryptocurrency Trading Investing Risk management Decentralized Finance
  1. Understand how to source memes for trading by looking at opportunity identification and filtering through platforms like Dexscreener.
  2. Perform due diligence on meme coins by checking for burned liquidity, mint and freeze authorities, holder distribution, and top trader PnL health.
  3. Size your bets based on the Kelly criterion formula, considering probabilities of success and potential bet gains. Tactical execution includes recycling costs, dollar-cost averaging, and follow-on investments.

Investing for Alpha or Beta?

Equal Ventures • 19 implied HN points • 01 Jun 23
💰 Finance Investing Venture Capital Market Dynamics Risk management
  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.

Twitch Bans Gambling [Finance Fridays]

Technology Made Simple • 39 implied HN points • 23 Sep 22
💼 Business Finance Regulations Influencer Marketing Risk management Tech Platforms
  1. Twitch banned unlicensed gambling on their platform which was a huge niche worth hundreds of millions, leading to a significant impact on the streaming community.
  2. The ban followed a major scam by a popular Twitch streamer that exposed concerns about minors and addicts being drawn to unregulated gambling sites.
  3. The decision by Twitch highlights the importance of regulations in online gambling, the risks associated with unregulated systems, and the societal impact of excessive gambling content consumption.

How big is the equity risk premium?

Klement on Investing • 1 implied HN point • 11 Dec 24
💰 Finance Investing Risk management Asset allocation Market Trends
  1. Institutional investors are more sensible than retail ones. They adjust their expected returns based on market conditions, increasing them during declines and lowering during rallies.
  2. Pension funds tend to use higher risk premium values compared to other institutional investors. This is likely due to their need to show that their assets can cover their liabilities.
  3. There's a wide range of expected equity risk premiums among different asset managers. Some have very pessimistic views on US equities, while others are much more optimistic.