Lauren Foisy, Rodrigo Jardim, Carlos Mota and Ali Akbar Sahiwala
Why a Change Management Plan?
Moving Forward 2008 2000
Acquisition of Bear Stearns
2012
Merged with the Chase Manhattan Co
Total losses of $6.25 Billion
Implementing Change 2004
2008
Acquisition of Bank One
Acquisition of Washington Mutual
2007 Beginning of the Financial Crash
2014 Mike Cavanagh resigns JPMC, CEO of Corporate Investment Banking
CREDIT RISK
COUNTRY RISK
MARKET RISK
SPECIAL CREDITS
REPORTING TEAM
MARKETING TEAM COUNTRY RISK
TECHNOLOGY TEAM
STRUCTURE
STRATEGY
SYSTEMS
SHARED VALUES STYLE
SKILLS
STAFF
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
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
6 months
6 months
12 months
Create Urgency
Make a Vision
- Identify high-risk scenarios with 75% management buy-in - Host honest discussions among all teams
CREATE THE CLIMATE
- Improve effective risk analysis, profitability and sustainability over time through increased interaction and communication
Form a Team - Appoint Change Leaders as leaders in Phase 1 - Create Change Team by Phase 3 spanning all departments and job positions
ENGAGE & ENABLE
Communicate It - Present to staff and get collect feedback - Host bi-weekly meetings
Clear Obstacles
Build on Change
- Involve senior management to mitigate obstacles - If employees resist change, they will be addressed individually
- Every six months, evaluate successes and determine improvements - Establish new goals as necessary, incorporating lessons learned
Celebrate Wins - Goals will be established and monitored on a six month cycle - Targets met will be celebrated among staff - Bonuses offered
IMPLEMENT & SUSTAIN
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”
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