Berkshire’s Warren Buffett Shows Bank CEOs How They Should Have Managed Risk


Warren Buffett offers many lessons to CEOs of financial companies and one of them is that they need to be chief risk officers of their institutions to avoid a crisis.

Much has been made about the lack of a chief risk officer at

SVB Financial

(Ticker SIVB) for much of last year and the bank’s ill-fated investments in Treasuries and mortgage securities. The losses on SVB’s bond portfolio, including $15 billion on its largest group of securities holdings, helped doom the bank.