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The Risk Paradox: Why Stability Breeds Complacency and Crisis
Veteran risk leader Nick Silitch warns that financial institutions invest least in risk management when it's needed most - during boom times. He unpacks the private capital crisis, dollar dominance, and the systemic threats few are watching closely.
Apr 14, 2025
Nicholas Silitch
Nicholas Silitch, Former Chief Risk Officer, Prudential
Tags: ALM, Treasury and Liquidity Risk Market Risk
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

In a reflective and far-reaching interview, Nick Silitch draws from over four decades in finance to outline how complacency during economic highs leads to systemic fragility.

He critiques the timing of risk investment, the shifting structure of private equity, and the underappreciated risk of the US dollar’s decline as a global reserve currency. He argues that institutions misallocate their risk management efforts, often reacting post-crisis rather than preparing proactively.

Silitch warns that today’s environment - marked by overstretched leverage, dwindling private capital returns, and unsustainable debt growth - echoes patterns that historically lead to financial upheaval.

Nicholas Silitch Bio

Nick Silitch is one the most respected and longest-tenured risk managers in the financial industry. Rising through banking leadership to become Chief Risk Officer of one of the world’s largest insurance companies he has had a front row seat to the most significant economic cycles challenges and regulatory changes over the last 40 years. As Chief Risk Officer for Prudential Financial Services for more than a decade Nick built an enterprise risk function from scratch—leading the company’s risk management agenda and determining its risk appetite across time and stress. He previously served as Chief Credit Officer where he laid the foundation for a dedicated market risk function and hedging strategy. Prior to Prudential Nick spent more than 25 years at BNY Mellon where he navigated multiple global financial challenges including leading the bank’s securities clearing operations through the 2008 financial crisis. Nick currently serves as Advisory Council Member of the International Association of Credit Portfolio Managers. He previously founded and chaired the North American Chief Risk Officer Council to create best practices in risk management throughout the insurance industry. Nick is a sought-after speaker and author on current industry topics and trends. He has served as a Practitioner in Residence at Georgetown University’s Edmund A. Walsh School of Foreign Service and Adjunct Professor at his alma mater Colby College where he earned a BA in Economics.

Nicholas Silitch
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