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." legislators and regulators, believe that risks can be managed by establishing and following rules, standards and guidelines. But for certain categories of risk, this is a false and dangerous assumption.

Two Cheers for JP Morgan's "Clawbacks"

Harvard Business Review

On the same call, Dimon himself announced that the global supervisor of the London office and head of the firm's retired Chief Investment Office (CIO), Ina Drew , would voluntarily give up the "equivalent to the maximum clawback amount." Dimon himself, who oversaw the CIO, could well have his 2012 compensation cut as a result of the trading problems. Third, who made the decisions (senior management, the board) based on what fact-finding and what kind of deliberative process?


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The JP Morgan "Whale" Report and the Ghosts of the Financial Crisis

Harvard Business Review

And unfortunately, they suggest that, in our huge, complex financial institutions, major failures of organizational discipline and major losses are likely to recur, despite greater attention to risk management. These are not failures associated with well-considered and well-bounded risk taking. Everyone understands this kind of risk taking is core to any business (financial or industrial or consumer) and obviously will not always be crowned with success.

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. What makes this case of corporate accountability so important is that it is a discretionary matter of "private ordering" under JP Morgan risk management policies, not under a mandatory rule contained in Dodd-Frank. Risk for one part of the bank might not be appropriate for another part of the bank.

Leadership in Cybersecurity

N2Growth Blog

There are various job titles such as; Chief Security Officer (CSO), Chief Risk Officer, Chief Information Security Officer (CISO), V.P., Below is a list of security initiatives that a security leader would either manage or have parallel impact upon within a business: Data security. Vendor management. Identity & Access Management (IAM). Vulnerability Management (VM). Managing enterprise risk tolerance. Audit management & support.

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3 Emerging Market Risks Companies Should Watch for in 2018

Harvard Business

They devote far more time to internal execution and competitive risks than to external risks that can change the playing field. This means that many emerging market risks get cut from the senior leadership agenda. At Frontier Strategy Group, we observed that in 2017, executives and boards paid the most attention to risks that dominated global headlines: Brexit, the Trump administration’s trade policy, cybersecurity, and, more recently, North Korea.

When Learning at Work Becomes Overwhelming

Harvard Business Review

This technology knowledge is piled on top of existing expertise nurse executives are expected to have about clinical practice, patient experience, finance, safety, employee relations, process improvement, leadership development, and managing interdisciplinary teams. This problem is not limited to top management, however. Is it surprising that management thinks there is a skills gap in management accounting ?