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Silicon Valley Bank, the largest bank to collapse since the 2008 financial crisis, operated without a chief risk officer for nine months between April 2022 and January 2023. The bank disclosed a $1.8 billion loss in its finances, raising concerns about the bank’s risk assessment practices. SVB’s previous head of risk, Laura Izurieta, who was a former Capital One employee, left the bank in April 2022, and she was not replaced until January 2023, when the bank hired Kim Olson, formerly of Japanese bank Sumitomo Mitsui. During this time, the bank’s European risk officer, Jay Ersapah, is accused of prioritizing diversity initiatives over her actual role, with several reports suggesting that she was more focused on pro-diversity initiatives such as a month-long Pride campaign and a Lesbian Visibility Day. This blog will discuss Silicon Valley Bank’s collapse, its risk management practices, and the criticism leveled against the bank’s risk officer.
The collapse of Silicon Valley Bank
Silicon Valley Bank’s collapse has raised concerns about the bank’s risk management practices. The bank disclosed a $1.8 billion loss in its finances, making it the largest bank to collapse since the 2008 financial crisis. The bank’s previous head of risk, Laura Izurieta, left the bank in April 2022, and she was not replaced until January 2023. During this time, the bank was operating without a chief risk officer, which has raised concerns about the bank’s risk assessment practices. The bank’s European risk officer, Jay Ersapah, has been accused of prioritizing diversity initiatives over her actual role.
Silicon Valley Bank’s risk management practices
Silicon Valley Bank’s risk management practices have been called into question since the bank’s collapse. The bank’s previous head of risk, Laura Izurieta, left the bank in April 2022, and she was not replaced until January 2023, which means that the bank operated without a chief risk officer for nine months. This raises concerns about the bank’s risk assessment practices, as the lack of a chief risk officer may have led to inadequate risk assessment procedures. In addition, the bank’s European risk officer, Jay Ersapah, has been accused of prioritizing diversity initiatives over her actual role.
The criticism leveled against Jay Ersapah
Jay Ersapah, who acts as CRO for the bank in Europe, Africa, and the Middle East, has been criticized for prioritizing diversity initiatives over her actual role. Ersapah, who describes herself as a ‘queer person of color from a working-class background,’ organized a month-long Pride campaign and implemented ‘safe space’ catch-ups for staff. While diversity initiatives are important, the bank’s collapse suggests that its risk assessment practices may have been inadequate. Ersapah has been accused of prioritizing diversity initiatives over her actual role, which may have contributed to the bank’s collapse.
Silicon Valley Bank’s collapse raises concerns
Silicon Valley Bank’s collapse raises concerns about the bank’s risk management practices. The bank operated without a chief risk officer for nine months, which may have led to inadequate risk assessment procedures. In addition, the bank’s European risk officer, Jay Ersapah, has been accused of prioritizing diversity initiatives over her actual role. While diversity initiatives are important, the bank’s collapse suggests that its risk assessment practices may have been inadequate. It is essential that banks prioritize risk assessment procedures to ensure that they operate in a sustainable and responsible manner.
Source:
https://www.dailymail.co.uk/news/ article-11848705/Woke-head-risk-assessment-Silicon-Valley-Bank-accused-prioritizing-diversity-issues.html
