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JP Morgan's Loss: Bigger than "Risk Management"

Harvard Business Review

The recent disclosure of a multi-billion dollar trading loss at JPMorgan Chase reminds us again of the challenge and complexity of risk management, the subject of our June 2012 HBR article, "Managing Risks: A New Framework." Each requires customized risk management processes.

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Can JP Morgan Transparently Police Itself?

Harvard Business Review

boss, Ina Drew , the former head of their unit in of the bank's, the Chief Investment Office (CIO); and CEO Jamie Dimon, to whom the CIO reported who oversaw the CIO. Drew quickly retired after the losses, and Iksil and Macris are, according to news reports, leaving the bank.

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Do Lawyers Make Better CEOs Than MBAs?

Harvard Business Review

A nearly $150 million settlement is pending for the fake-account scandal that roiled the bank last year, and a new scandal has emerged: Recently it has been alleged that thousands of customers were signed up for insurance without their knowledge. ’s largest banks? What explains the divergence in the fortunes of two of the U.S.’s

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Don’t Blame the Apple and Exonerate the Tree

Harvard Business Review

That comes after a nearly $1 billion deal just a few days ago to end civil investigations into several matters including the bank’s multi-billion-dollar “ London Whale ” trading loss. Then there are the two former bank employees that authorities have been trying to arrest ( one successfully ) for their roles in the London Whale events.

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How an American Express Executive Drives Growth

Harvard Business Review

Prior to joining American Express in 2010, Schulman was CEO of Virgin Mobile and Priceline. Instead of thinking about technology for technology’s sake, we studied the real consumer pain points in the market. They’re unbanked or under-banked or, as we call it, unhappily banked. Leadership'

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Mother Nature Doesn't Do Bailouts

Harvard Business Review

Continuing the trend toward more and costlier climate-related disasters will have the inevitable result that it always has: insurance companies will either raise premiums or exit particularly risky markets, as has happened before with flood insurance in places that are increasingly susceptible to storm surges.

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What Africa's Entrepreneurs Can Teach the World

Harvard Business Review

I am now convinced, though, that the entrepreneurial driver behind talent churn in African labor markets actually yields significant net benefits for African economies. This appeared to point to a serious deficit in quality followership in Africa, one that meant a dearth of vital managerial talent.