3CS Model and to improve the internal control - Verkha Rani - Bog

JPMorgan Chase (JPM) along with its competitors, suffered substantial losses during the 2007¿2008 financial crisis, arguably due in part to poor decision controls and monitoring of their traders. JPMorgan Chase (JPM) emerged from the crisis by having the best risk management practices in the financial industry. This was mainly successful because of two reasons, first, CEO Jamie Dimon¿s ¿close attention to risk¿ (Barr, 2008), was widely acknowledged as the ¿ultimate chief risk officer of the bank.¿ And second, the formal head of the risk management function reported directly to Mr Dimon and was part of the executive team with continual access to the company¿s board of directors (Kaplan & Mikes, 2012).