diff --git a/x/observer/keeper/hooks.go b/x/observer/keeper/hooks.go
index ec002b5a2f..631abd00e3 100644
--- a/x/observer/keeper/hooks.go
+++ b/x/observer/keeper/hooks.go
@@ -15,7 +15,7 @@ type Hooks struct {
 func (h Hooks) AfterValidatorRemoved(ctx sdk.Context, _ sdk.ConsAddress, valAddr sdk.ValAddress) error {
 	err := h.k.CleanObservers(ctx, valAddr)
 	if err != nil {
-		return err
+		ctx.Logger().Error("Error cleaning observer set", "error", err)
 	}
 	return nil
 }
@@ -23,7 +23,7 @@ func (h Hooks) AfterValidatorRemoved(ctx sdk.Context, _ sdk.ConsAddress, valAddr
 func (h Hooks) AfterValidatorBeginUnbonding(ctx sdk.Context, _ sdk.ConsAddress, valAddr sdk.ValAddress) error {
 	err := h.k.CheckAndCleanObserver(ctx, valAddr)
 	if err != nil {
-		return err
+		ctx.Logger().Error("Error cleaning observer set", "error", err)
 	}
 	return nil
 }
@@ -31,7 +31,7 @@ func (h Hooks) AfterValidatorBeginUnbonding(ctx sdk.Context, _ sdk.ConsAddress,
 func (h Hooks) AfterDelegationModified(ctx sdk.Context, delAddr sdk.AccAddress, valAddr sdk.ValAddress) error {
 	err := h.k.CheckAndCleanObserverDelegator(ctx, valAddr, delAddr)
 	if err != nil {
-		return err
+		ctx.Logger().Error("Error cleaning observer set", "error", err)
 	}
 	return nil
 }
@@ -39,7 +39,7 @@ func (h Hooks) AfterDelegationModified(ctx sdk.Context, delAddr sdk.AccAddress,
 func (h Hooks) BeforeValidatorSlashed(ctx sdk.Context, valAddr sdk.ValAddress, fraction sdk.Dec) error {
 	err := h.k.CleanSlashedValidator(ctx, valAddr, fraction)
 	if err != nil {
-		return err
+		ctx.Logger().Error("Error cleaning observer set", "error", err)
 	}
 	return nil
 }
diff --git a/x/observer/keeper/hooks_test.go b/x/observer/keeper/hooks_test.go
index 7b5ef7ed64..09088bed44 100644
--- a/x/observer/keeper/hooks_test.go
+++ b/x/observer/keeper/hooks_test.go
@@ -139,15 +139,20 @@ func TestKeeper_AfterDelegationModified(t *testing.T) {
 }
 
 func TestKeeper_BeforeValidatorSlashed(t *testing.T) {
-	t.Run("should error if validator not found", func(t *testing.T) {
+	t.Run("should not error if validator not found", func(t *testing.T) {
 		k, ctx, _, _ := keepertest.ObserverKeeper(t)
 
 		r := rand.New(rand.NewSource(9))
 		validator := sample.Validator(t, r)
+		os := sample.ObserverSet(10)
+		k.SetObserverSet(ctx, os)
 
 		hooks := k.Hooks()
 		err := hooks.BeforeValidatorSlashed(ctx, validator.GetOperator(), sdk.NewDec(1))
-		require.Error(t, err)
+		require.NoError(t, err)
+		storedOs, found := k.GetObserverSet(ctx)
+		require.True(t, found)
+		require.Equal(t, os, storedOs)
 	})
 
 	t.Run("should not error if observer set not found", func(t *testing.T) {