JP Morgan Chase 2008 Annual Report Download - page 89

JPMorgan Chase & Co. / 2008 Annual Report 87
The Investment Committee oversees global merger and acquisition
activities undertaken by JPMorgan Chase for its own account that
fall outside the scope of the Firm’s private equity and other principal
finance activities.
The Asset-Liability Committee is responsible for approving the Firm’s
liquidity policy, including contingency funding planning and exposure
to SPEs (and any required liquidity support by the Firm of such SPEs).
The Asset-Liability Committee also oversees the Firm’s capital man-
agement and funds transfer pricing policy (through which lines of
business “transfer” interest and foreign exchange risk to Treasury in
the Corporate/Private Equity segment).
The Risk Working Group meets monthly to review issues such as risk
policy, risk methodology, Basel II and regulatory issues and topics
referred to it by any line of business risk committee. The Markets
Committee, chaired by the Chief Risk Officer, meets at least weekly
to review and determine appropriate courses of action with respect
to significant risk matters, including but not limited to: limits; credit,
market and operational risk; large, high risk transactions; and hedg-
ing strategies.
The Board of Directors exercises its oversight of risk management,
principally through the Board’s Risk Policy Committee and Audit
Committee. The Risk Policy Committee oversees senior management
risk-related responsibilities, including reviewing management policies
and performance against these policies and related benchmarks. The
Audit Committee is responsible for oversight of guidelines and poli-
cies that govern the process by which risk assessment and manage-
ment is undertaken. In addition, the Audit Committee reviews with
management the system of internal controls and financial reporting
that is relied upon to provide reasonable assurance of compliance
with the Firm’s operational risk management processes.
Investment
Committee
Asset-Liability
Committee (ALCO)
Markets CommitteeRisk Working Group (RWG)
Operating Committee
Treasury and Chief Investment Office (Liquidity, Interest Rate and Foreign Exchange Risk)
RFS Risk
Committee
Card
Services
Risk
Committee
TSS
Risk
Committee
Asset
Management
Risk
Committee
Commercial
Banking
Risk
Committee
Investment
Bank
Risk
Committee
CIO
Risk
Committee
Risk Management (Market, Credit, Operational and Private Equity Risk)
Legal and Compliance (Legal and Fiduciary Risk)