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by college_physics
1200 days ago
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> Touting “SVB’s deep understanding of the markets it serves, our *strong* risk management practices” (Emphasis mine). According to other news [0] they did not have a formally appointed chief risk officer for eight months. While having a puppet CRO is obviously not a sufficient condition to ensure "strong risk management", having a well staffed and - as much as possible - independent risk management department is widely considered best practice [1]. In this instance such an internal body would get on high alert and run scenario upon scenario and stress test as soon as the inflation/interest rate environment changed. [0] https://fortune.com/2023/03/10/silicon-valley-bank-chief-ris... [1] https://www.bis.org/basel_framework/chapter/SRP/30.htm |
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