Following the revelation of a loss of $ 2 billion in trade in the office of JP Morgan investment (IOC) in London, the Board of Directors of the Company is responsible for recommending changes to their risk management practices and corporate governance structure. The case provides background on the highly respected management infrastructure risks and how JP Morgan CEO focused on its historical strength in risk management to argue against the need for the United States? PART strict regulations contained in the Dodd-Frank Act and associated modification Volcker. The role of regulation is important. Because the attempt to meet the stringent requirements of these rules and the new U.S. Basel III, the IOC has taken positions that have not been well understood and important derivatives, rather than reduce business risk exposure increased. More interest is the simultaneous change in the method of calculating the risk of JP Morgan, which resulted in a significant reduction in risk measurement and therefore an improvement in the level of risk-weighted assets of the company.
by
Stephen Sapp
Source: Ivey Publishing
6 pages.
Release: September 25, 2012. Prod #: W12218-PDF-ENG
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