Extreme Platform Risk Example
Silicon Valley Bank, one of the biggest US banks just failed. An extreme example of platform risk...
In a previous post, I explained what platform risk is. In short, it is the risk associated with relying on any 3rd party.
It is a bit long there, and over the past few days (middle of March 2023), we've seen a good example of what it can be with the fallout of Silicon Valley Bank (SVB).
Banks are supposed to be a safe place to put your money in. Especially with SVB being one of the biggest US Banks. You could assume your funds were safe there.
But, it failed in a spectacular way.
Let see how it goes over the next few days / months or years. It may be saved in some ways. Hopefully everyone involved recover all of their money.
In all cases, it is a good reminder that even the biggest / (supposed to be) safest entities can also be risky.
Consider your providers carefully, own & control as much as you can and be sure to understand the risks introduced in your business.