Case | HBS Case Collection | September 2010 (Revised November 2010)

J.P. Morgan Private Bank: Risk Management during the Financial Crisis 2008-2009

by Anette Mikes, Clayton S. Rose and Aldo Sesia

Abstract

Mary Erdoes, the CEO of JP Morgan's asset management business, and three colleagues provide insights into risk management issues faced by the firm's private bank during the financial crisis in 2008–2009. The case provides perspective on the philosophy with which they approach risk management, issues of greatest concern, tools and processes used in practice, the benefits and limitations of quantitative models and balance between the use of models and exercising judgment, and lessons learned from the crisis about risk management.

Keywords: Judgments; Financial Crisis; Globalized Firms and Management; Management Analysis, Tools, and Techniques; Risk Management; Mathematical Methods; Banking Industry; United States;

Citation:

Mikes, Anette, Clayton S. Rose, and Aldo Sesia. "J.P. Morgan Private Bank: Risk Management during the Financial Crisis 2008-2009." Harvard Business School Case 311-003, September 2010. (Revised November 2010.)