JPMorgan Chase Change Initiative

Lauren Foisy, Rodrigo Jardim, Carlos Mota and Ali Akbar Sahiwala

Why a Change Management Plan?

2000Merged with the Chase Manhattan Co

2004Acquisition of Bank One

2007Beginning of the Financial Crash

2008Acquisition of Bear Stearns

2008Acquisition of Washington Mutual

2012Total losses of $6.25 Billion

2014Mike Cavanagh resigns JPMC, CEO of Corporate Investment Banking

Implementing Change

Moving Forward

CREDIT RISK COUNTRY RISK MARKET RISK SPECIAL CREDITS

COUNTRY RISK

REPORTING TEAM

MARKETING TEAM

TECHNOLOGY TEAM

SHARED VALUES

STYLE

STAFF

SKILLS

STRATEGY

STRUCTURE

SYSTEMS

SHARED

Specialized and structured roles have developed around task-oriented schedules.

Departments have tripled in staff over the past four years and are expected to grow.

Advancing Risk Management- Appreciate that managing risk better is instinctive and follows trends

- Recognize risk management as a joint, continual process

- Understand that risk is addressed at levels and is accountable

6 months 6 months 12 months

Change Leaders appointed from different Risk Management teams

Present ChaseConnect Initiative to staff and incorporate feedback

Change Team to execute and monitor progress of pilot program

Create Urgency

CREATE THE CLIMATE

ENGAGE & ENABLE

- Identify high-risk scenarios with 75% management buy-in

- Host honest discussions among all teams

Form a Team

- Appoint Change Leaders as leaders in Phase 1

- Create Change Team by Phase 3 spanning all departments and job positions

Make a Vision

- Improve effective risk analysis, profitability and sustainability over time through increased interaction and communication

Communicate It

- Present to staff and get collect feedback

- Host bi-weekly meetings

IMPLEMENT & SUSTAIN

Clear Obstacles

- Involve senior management to mitigate obstacles

- If employees resist change, they will be addressed individually

Celebrate Wins

- Goals will be established and monitored on a six month cycle

- Targets met will be celebrated among staff

- Bonuses offered

Build on Change

- Every six months, evaluate successes and determine improvements

- Establish new goals as necessary, incorporating lessons learned

Anchor Change

- Motivate others to join by promoting team through incentives

- As new employees join, explaing vision of the change vision

“The development of a risk culture throughout the firm is perhaps the most fundamental tool for effective risk management.”

Institute of International Finance, 2008

Measures of Success- Percent of business strategy objectives mapped to Risk Management

- Number of times audit committee and board review Risk Management

- Amount of financial losses incurred due to ineffective Risk Management

“First-class business in a first-class way”

THANK YOU