Citing SVB failure, bill proposes big bank chief risk officer mandates

A bill proposed by a House Democrat would require large banks to have a chief risk officer and notify relevant regulators when the position becomes vacant.

The “Chief Risk Officer Enforcement and Accountability Act,” introduced by Rep. Sean Casten (D-Ill.), was put forward this month as part of a wave of bills in response to recent banking turmoil in the United States that began with the collapse of Silicon Valley Bank (SVB).

SVB notably went eight months last year without a chief risk officer, after Laura Izurieta exited the role in April 2022. The company’s risk senior leadership held the responsibilities of the role until Kim Olson joined SVB in late December.