JP Morgan Private Bank: Risk Management during the Financial Crisis 2008-2009

Abstract

Mary Erdoes, the CEO of JP Morgan's Asset Management business, and three colleagues provide insights into risk management issues faced by the firm's Private Bank during the financial crisis in 2008-2009. The case provides perspective on the philosophy with which they approach risk management, issues of greatest concern, tools and processes used in practice, the benefits and limitations of quantitative models and balance between the use of models and exercising judgment, and lessons learned from the crisis about risk management.

Learning Objective: Provide for an exploration of the complex and varied nature of risk management in a financial services firm.