Well, when I was working with auditors (internal AND external) in previous roles in major financial institutions, we always performed tests if risk management t

Well, when I was working with auditors (internal AND external) in previous roles in major financial institutions, we always performed tests if risk management tools are sufficient and reserves are proper. In the case of SVB it would have been possible to point out the concentration risk before bringing this into the public domain. But then, I do agree with you that the situation evolved as a sum of many parts, which included the, at the time, highly unlikely result of a bank run by the VC community. Looking back, I still shake my head how this came to be.