How is JP Morgan Chase(JPMC) engaged in development of operational risk management?
JPMC has already formed an operational risk group to establish a framework for identifying, measuring and monitoring operational risk throughout the Group. Understandably, Business Continuity Processes have received detailed attention and is seen as one of the fundamental elements of operational risk management. As highlighted by the events of 11th September, it is one of the key elements in mitigating operational risk and requires increased and particular focus in developing operational risk management processes within a financial institution. Risk assessment is developed through self-assessment by the lines of business. The businesses assess the risks, which are primarily areas where something can go wrong. These are sub-divided into segments, which are reviewed in the context of the controls in place, frequently technology or processes impacted if the risks were realised. The self-assessment is conducted from the perspective of all the functions which support that unit. “Open issues
