The hottest Risk management Substack posts right now

And their main takeaways
Category
Top Finance Topics

High Performing Teams: Where do the Risks come from?

🔮 Crafting Tech Teams • 19 implied HN points • 15 Jun 23
💼 Business Team Management Risk management Experience
  1. Identifying risk areas that can impede team development, such as expectation management, trust-building with stakeholders, and lack of experience.
  2. Challenges in relations between Product and Engineer teams, including unresolved tension, imposter syndrome, and lack of trust.
  3. Emphasizing the importance of being skilled in expectation management and building trust to foster a high-performing team.

LTCM: 25 Years On

Net Interest • 34 implied HN points • 18 Aug 23
💰 Finance Risk management Leverage Financial Models
  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 why and how of SaaS Governance

Resilient Cyber • 39 implied HN points • 06 Feb 23
🕹 Technology Cloud Security Cybersecurity Risk management Compliance
  1. Organizations need a solid plan to manage the security risks associated with their wide use of Software as a Service (SaaS). This includes knowing what SaaS applications they use and applying security measures.
  2. Many companies focus heavily on securing their infrastructure services like AWS or Azure, but they often overlook the significant risks that come with SaaS applications. This can lead to security breaches.
  3. It's important for businesses to understand the shared responsibility model in cloud security and realize that while SaaS providers handle some security, the ultimate responsibility for data protection still lies with the organization.

On attack, defence and the beautiful game

The Jolly Contrarian • 19 implied HN points • 01 May 23
🎾 Sports Strategy Analysis Risk management Games Complexity
  1. Different values are placed on attack and defence in sports like football based on the asymmetry of payoffs between the two roles.
  2. Defenders focus on conservative, coordinated actions to maintain the status quo, while attackers take big risks to improve the position.
  3. Infinite games, characterized by complex systems and unpredictable outcomes, require the ability to adjust, react, adapt, and capitalize on opportunities in a changing environment.
Get a weekly roundup of the best Substack posts, by hacker news affinity:

Risk of Ruin

Net Interest • 24 implied HN points • 13 Oct 23
💰 Finance Risk management Investing Behavioral Finance Portfolio Management Cryptocurrency
  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.

Issue #85 | Risk Management Science vs Politics | Wasabi Fraud | Synbio and HFSS Foods Explained | Goats Eating Tomatoes |

The Rotten Apple • 42 implied HN points • 24 Apr 23
🍲 Food & Drink Food Safety Food Fraud Food Science Risk management Food Industry
  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.

What immortal hand or eye: The Archegos affair, Part 1.

The Jolly Contrarian • 39 implied HN points • 23 Jul 22
💰 Finance Investment Risk management Regulation Banking Derivatives
  1. Family offices, even though seemingly benign, can engage in risky behavior that can have significant market impacts.
  2. Securities markets are complex environments where probabilistic risk management tools may fail, especially in extreme scenarios.
  3. Regulations requiring banks to pay out variation margins can inadvertently pour petrol on a fire during market volatility, leading to unintended consequences.

How the Banking System Changed Post-SVB

Apricitas Economics • 32 implied HN points • 05 Jun 23
💰 Finance Banking System Economic Analysis Financial Institutions Risk management Monetary Policy
  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.

SVB: Conflicts of (Insider Loan) Interest

Nongaap Investing • 37 implied HN points • 22 Mar 23
💼 Business Corporate Governance Venture Capital Conflicts of Interest Risk management
  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.

#1: Varieties of the unknown

The Uncertainty Mindset (soon to become tbd) • 179 implied HN points • 06 Nov 19
💼 Business Finance Risk management Decision-making Economics Strategy
  1. There are different types of unknown situations we can face. It's important to recognize these differences because they affect how we make decisions.
  2. A common mistake is treating real uncertainty like risk, thinking we can predict outcomes when we really can't. Understanding this can help us better navigate complex situations.
  3. We need to find new ways to plan and react when faced with unknown outcomes, since these scenarios are becoming more common. Simply applying a risk mindset isn't enough.

Scenario Planning: Strategy, Steps and Practical Examples

Product Mindset's Newsletter • 11 implied HN points • 28 Jan 24
💼 Business Strategy Decision-making Resilience Risk management Innovation
  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.

Week 45 - 🚀 Harness the Power of Rapid Prototyping

The Product Channel By Sid Saladi • 23 implied HN points • 25 Jun 23
💼 Business Product Management User Feedback Risk management
  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.

The cost we bear

Apperceptive (moved to buttondown) • 16 implied HN points • 22 Sep 23
🕹 Technology Risk management Safety Regulations
  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.

#18: Coronavirus

The Uncertainty Mindset (soon to become tbd) • 119 implied HN points • 04 Mar 20
🏥 Health Politics Public Health Pandemics Health Policy Risk management
  1. It's hard to know how long someone can spread the virus without showing symptoms. The lengths of these periods can vary a lot.
  2. Contagion can spread quickly because people who seem healthy might still be infectious. This makes tracking and isolating cases much harder.
  3. Even though it might seem like the flu is more dangerous, we don't have the same defenses against coronavirus, making the potential for widespread issues very real.

What is Capitulation ?

Shivansh • 1 HN point • 13 Jun 24
💰 Finance Investing Technical Analysis Stock Market Trading Risk management
  1. Capitulation happens when investors lose hope in the market and sell their investments at low prices, often during tough times like a financial crisis.
  2. Technical analysis, like using candlestick charts, helps identify capitulation patterns that signal potential major changes in price trends.
  3. Capitulation can present opportunities for profit, depending on whether an investor is in a long or short position - it's neither inherently good nor bad, but a strategic move.

Margin of Safety

Axial • 7 implied HN points • 26 Feb 24
💰 Finance Investing Value Risk management Market Analysis Portfolio Management
  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

Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets • 39 implied HN points • 19 Jan 22
💰 Finance Stock Market Investment Economic Trends Risk management Market Analysis
  1. US stocks did really well in 2021, continuing a strong climb from the previous year. This makes investors feel good, but it also raises concerns about whether stocks are becoming too expensive.
  2. Different sectors performed differently; energy and real estate were the winners in 2021, unlike the tech stocks that led in 2020. This shows how market trends can quickly change and impact returns.
  3. The risk of investing in stocks has shifted, and the expected returns are lower than in the past. Investors need to rethink how much they expect to earn from the stock market in the future.

18/36 :Product Discovery - Risks & Mitigations

Product Mindset's Newsletter • 17 implied HN points • 21 May 23
💼 Business Risk management Technology Project management Software Development Strategic Planning
  1. Understanding product risks involves assessing the impact of uncertainty on developing a product.
  2. Risk management in IT projects is crucial for maximizing results, effective communication, and allocating funds for high risks.
  3. Managing risks involves identifying, analyzing, and mitigating them through strategies like avoiding, reducing likelihood, and reducing impact.

Reading: How Big Things Get Done

Wetware Snippets • 5 implied HN points • 11 Mar 24
💼 Business Project management Success Factors Risk management
  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.

How To Avoid Losing Your Crypto

DeFi Education • 2 HN points • 13 Mar 24
🔮 Crypto Security Investing Education Risk management Technology
  1. Many people lose their crypto profits because they don't sell at the right time. It's important to have a plan to take profits when you can.
  2. Understanding the risks of different products is crucial. Many losses come from not knowing how things like hacks or hidden risks can affect your investments.
  3. Security is key to keeping your crypto safe. This means having good practices in place, like using hardware wallets and being aware of scams and phishing attempts.

Buying the Dip

reedmolbak • 2 HN points • 05 Mar 24
💰 Finance Investing Assets Market Analysis Risk management Financial Modeling
  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.

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.

#39: Remove the plow and hive

The Uncertainty Mindset (soon to become tbd) • 59 implied HN points • 29 Jul 20
💼 Business Innovation Organizational Design Risk management Flexibility Decision-making
  1. It's important to understand risks properly by knowing all possible outcomes and their chances, instead of just labeling everything uncertain as risky.
  2. Taking small steps and learning from them is better than waiting to act. This helps you understand what's happening as things change.
  3. Being flexible and open to new opportunities is more helpful than trying to make everything super efficient. This way, you're ready when good chances come along.

The hedge funds strike back

The Jolly Contrarian • 39 implied HN points • 19 Feb 21
💰 Finance Legal Risk management
  1. Hedge funds made a comeback after a ruling in a unique case involving an accidental large payment from Citibank to hedge funds on behalf of Revlon, leading to legal battles and appeals.
  2. The case highlighted issues with operational errors, system design complexity, and the application of legal concepts like restitution in contract disputes.
  3. Exploring books on human error investigations and accidents shed light on organizational risks, system failures, and the human factors behind accidents in various industries.

Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets • 19 implied HN points • 09 Feb 22
💰 Finance Investment Risk management Market Analysis Corporate Finance Economic Theory
  1. Risk is both danger and opportunity. Taking big chances can lead to rewards, but it also comes with the possibility of losing money.
  2. It's important to balance between risk and reward. If you don't expect a good return from a risky investment, you might be wasting your time.
  3. Real risk comes from not knowing the future, not just bad outcomes. It's about the uncertainty of what may happen next.

Banning Open-Weight Models Would be a Disaster

Coding on Autopilot • 1 HN point • 08 Mar 24
🕹 Technology AI Ethics Regulation Open Source Data Privacy Risk management
  1. Banning open-weight models could be harmful as it gives individuals, academics, and researchers the ability to innovate and contribute positively.
  2. Open models level the playing field, democratize access to AI technology, and foster competition, innovation, and economic growth.
  3. Regulations should focus on large organizations rather than restricting access to individuals; the focus should be on punishing those who misuse AI technology.

Meta v. Bright Data Perspectives: A Data Score Interview with Glacier Networks

The Data Score • 1 HN point • 20 Feb 24
💼 Business Data insights Legal Compliance Web scraping Data Governance Risk management
  1. The court ruling in the Meta v. Bright Data case may lead to more defenses against web scraping and offers clarity on accessing public data while underscoring the importance of adhering to individual website terms.
  2. Before starting a web mining project, individuals should carefully review each website's terms, assess intended usage of scraped data, and consider the legal implications of accessing specific content.
  3. Upcoming court cases, like those involving Meta and other companies, may set standards for web mining governance while Glacier Network emphasizes a standardized risk policy to simplify data exchange and compliance in a rapidly evolving data industry.

#156 - Silicon Valley Bank: An Autopsy

Below the Line from Kevin LaBuz • 7 implied HN points • 26 Mar 23
💰 Finance Banking Economy Investing Risk management Deposits
  1. Silicon Valley Bank grew rapidly and reached the 16th largest bank in the US, but struggled with managing its growth.
  2. Banks make money by taking deposits and making loans, operating with fractional reserves and managing a balance between liquidity and lending.
  3. SVB's downfall was fueled by a combination of poor decisions, rising interest rates, and a concentrated deposit base that led to a rapid collapse.

Breaking: Lineage Hit With FDIC Consent Order

Fintech Business Weekly • 2 HN points • 23 Feb 24
💰 Finance Banking Regulation Fintech Risk management Compliance
  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.