Lessons from the rapid growth and subsequent failure of SVB bank

Did the rapid growth of SVB Bank contribute to its failure? Yes, it did. As the bank expanded its operations and became more complex, the board and management failed to effectively manage the associated risks, such as liquidity and interest rate risk. Additionally, short-term profits were prioritized over effective risk management, which resulted in compensation
Read more
No Comments

CRO series #2 – Risks from the increase in interest rates

For Chief Risk Officers (CRO) in the banking sector, navigating the current economic landscape is no easy feat. The recent rapid and steep increase in interest rates have added to their concerns. Welcome to post #2 of the CRO series. ▪ The recent increase in interest rates was a necessary measure to combat inflation. However, like
Read more
No Comments

CRO series #1 – Risk of a rapid outflow of deposits

Multiple people connected together through the internet
Top Concerns keeping Chief Risk Officers of Banks up at night – the CRO series – Post #1 Welcome to the first post in my series on the top concerns of Chief Risk Officers (CROs) in the banking industry. As recent events have highlighted new challenges, CROs have a lot on their plates these days.
Read more
No Comments