Lessons from SVB Collapse: Banks Must Invest in Risk Management Technology

SAS expert Stas Melnikov discusses the key steps banks must take to avoid the next crisis

Published on Feb. 26, 2026

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The collapse of Silicon Valley Bank (SVB) in March 2023 highlighted the need for banks to invest in integrated risk management systems and advanced analytics. Stas Melnikov of SAS discusses the structural issues that still exist, such as asset-liability mismatches and fragmented systems, and emphasizes the importance of adopting technology that can quantify risks quickly and provide a holistic view of the balance sheet. While large global banks are making progress, smaller regional and community banks continue to struggle under the burden of regulation, leaving little budget for robust internal risk management. Melnikov argues that democratizing advanced analytics can help level the playing field and ensure all banks, not just the largest, are equipped to navigate the evolving risk landscape.

Why it matters

The SVB collapse highlighted the need for banks to have integrated risk management systems and advanced analytics capabilities to identify and mitigate emerging threats. Failure to address these issues could lead to more bank failures and undermine confidence in the financial system.

The details

Melnikov explains that the structural issues that contributed to the SVB collapse, such as asset-liability mismatches and fragmented systems, still exist in the banking industry. He notes that while large global banks are investing in technology to improve risk management, smaller regional and community banks are struggling to allocate sufficient resources due to the burden of regulation. Melnikov emphasizes the importance of adopting solutions that can provide a holistic view of the balance sheet and quickly quantify interconnected risks, such as interest rate, credit, and liquidity risks.

  • The SVB collapse occurred on March 10, 2023.
  • Signature Bank was closed by state officials just two days later, on March 12, 2023.
  • The FDIC, Treasury Department, and Federal Reserve announced on March 12, 2023 that depositors in SVB and Signature Bank would have all of their deposits protected.

The players

Stas Melnikov

Head of Quantitative Research and Risk Data Solutions at SAS, a leading provider of analytics and risk management software.

Silicon Valley Bank (SVB)

A bank that collapsed in March 2023, leading to the third-largest bank failure in U.S. history.

Signature Bank

A New York-based bank that was closed by state officials on March 12, 2023, two days after the SVB collapse.

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What they’re saying

“We have a number of structural issues that existed before and still exist. We had a decade of super low interest rates that pushed many banks into a significant asset liability mismatch from an interest rate risk perspective.”

— Stas Melnikov, Head of Quantitative Research and Risk Data Solutions at SAS (retailbankerinternational.com)

“You should have systems that are able to quantify risks quickly. They should be integrated, because financial risks don't exist in isolation.”

— Stas Melnikov, Head of Quantitative Research and Risk Data Solutions at SAS (retailbankerinternational.com)

What’s next

As the third anniversary of the SVB collapse approaches, banks must continue to invest in integrated risk management systems and advanced analytics to identify and mitigate emerging threats. Regulators and policymakers should also explore ways to support smaller regional and community banks in strengthening their risk management capabilities.

The takeaway

The SVB collapse serves as a stark reminder that banks of all sizes must prioritize robust risk management practices and adopt technology solutions that provide a holistic view of their balance sheets and the ability to quickly quantify interconnected risks. Failure to do so could lead to more bank failures and undermine confidence in the financial system.