# Risk management `kaal:entity:risk-management` **Status.** derived This node is assembled mechanically from the 7 claims that carry the concept tag `risk-management`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 7 claims across 7 works, 2010 to 2024. **2010** - [1558614-008](https://wulfkaal.github.io/claims/1558614-008) [predictive/argued] -- Because German banks absorbed both the 2008 credit crisis and the 2010 sovereign debt crisis while American banks faced only the first, German regulators and bankers are likely to impose stricter substantive risk management rules than countries that faced only one of those shocks. > German banks, like Ameri- can banks, have been exposed to the 2008 credit crisis, and unlike their American rivals, German banks also face a second threat in their exposure to the 2010 sovereign debt crisis Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614 **2016** - [2748096-013](https://wulfkaal.github.io/claims/2748096-013) [mechanism/asserted] -- Hedge funds' risk management practices are typically evolved enough to constitute a major barrier to systemic shocks, and their trading counterparties and lenders further help prevent losses large enough to disrupt the financial system. > Hedge funds' risk management practices are typically so evolved that they constitute a major barrier to systemic shocks. Hedge funds' counterparties in trades and lenders to hedge funds can also help prevent large losses that could disrupt the financial system. Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096 **2017** - [2957645-023](https://wulfkaal.github.io/claims/2957645-023) [mechanism/argued] -- Where conversion has a negative effect on stock price, management is further incentivized to maintain and manage risk in order to avoid reputational loss and the income reduction caused by losses in stock options. > In situations where conversion had a negative effect on stock price,49 management could be incentivized further to maintain and manage risk to avoid reputational loss and income reduction due to losses in stock Kaal, Dynamic Regulation via Contingent Capital (2017). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2957645 **2019** - [3405660-025](https://wulfkaal.github.io/claims/3405660-025) [failure/argued] *(failure mode)* -- Competition among creditor banks undermines indirect regulation, because competing banks compromise on important elements of the risk management process and agree to overly generous credit conditions. > Competition among creditor banks can also lead to compromising on important elements of the risk management process and agreeing to overly generous credit conditions. Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660 **2021** - [3936876-027](https://wulfkaal.github.io/claims/3936876-027) [mechanism/argued] -- Operational risk is inherently high in custody services because of the high volume of transactions processed daily, and those risks are magnified in a global custody operation running around the clock across different markets. > Operational risk is inherently high in custody services because of the high volume of transactions processed daily. Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876 - [3962614-009](https://wulfkaal.github.io/claims/3962614-009) [failure/argued] *(failure mode)* -- None of the standard VC deal evaluation criteria reflect how a prospective deal may correlate with a deal already held in the capitalist's investment portfolio. > Additionally, none of those criteria reflect how a prospective deal may correlate with one already in the capitalist's investment portfolio. Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614 **2024** - [4855607-039](https://wulfkaal.github.io/claims/4855607-039) [normative/argued] -- Organizations should adopt web3 governance frameworks incrementally, beginning with less critical applications in order to assess impacts and refine methodologies, because staged adoption is what allows the risks to be managed while the benefits of decentralized AI governance are realized. > the author recommends adopting web3 governance frameworks incrementally, starting with less critical applications to assess impacts and refine methodologies. This staged adoption allows organizations to manage risks while realizing the benefits of decentralized AI governance. Wulf A. Kaal, How AI Models are Optimized Through Web3 Governance (2024). SSRN: https://ssrn.com/abstract=4855607 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/risk-management.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.