risk managment and question 5
so its a banking company
active should/can risk management be in terms of enforcing limits or breaches? If you were to re-design the risk management policy for the CIO, what would be your top 3 changes? 5. As head of a large international organization, describe the lessons you would take away and the steps you would take to prevent a similar occurrence in your company. 1. How did JP Morgan find itself in this position? Develop a timeline of events from 2011 to the summer of 2012. 2. Consider standard market risk management practices for financial institution, such as VaR, which have been in place since the mid-1990s: a. Why was the risk management of the SCP not sufficient to prevent such an extraordinary loss? b. Within the context of the case, which risk metric do you consider most appropriate: CS01, Var, total MV exposure? 3. How did the bank, its shareholders, and the regulators react to the situation? Were these reactions appropriate? 4. Consider the organizational structure and processes at JP Morgan in early 2011, how active should can risk management be in terms of enforcing limits or breaches? If you were to re-design the risk management policy for the CIO, what would be your top 3 changes? 5. As head of a large international organization, describe the lessons you would take away and the steps you would take to prevent a similar occurrence in your company. active should/can risk management be in terms of enforcing limits or breaches? If you were to re-design the risk management policy for the CIO, what would be your top 3 changes? 5. As head of a large international organization, describe the lessons you would take away and the steps you would take to prevent a similar occurrence in your company. 1. How did JP Morgan find itself in this position? Develop a timeline of events from 2011 to the summer of 2012. 2. Consider standard market risk management practices for financial institution, such as VaR, which have been in place since the mid-1990s: a. Why was the risk management of the SCP not sufficient to prevent such an extraordinary loss? b. Within the context of the case, which risk metric do you consider most appropriate: CS01, Var, total MV exposure? 3. How did the bank, its shareholders, and the regulators react to the situation? Were these reactions appropriate? 4. Consider the organizational structure and processes at JP Morgan in early 2011, how active should can risk management be in terms of enforcing limits or breaches? If you were to re-design the risk management policy for the CIO, what would be your top 3 changes? 5. As head of a large international organization, describe the lessons you would take away and the steps you would take to prevent a similar occurrence in your company
