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.
