JP Morgan Chase 2014 Annual Report Download - page 109

JPMorgan Chase & Co./2014 Annual Report 107
The chart below illustrates the governance structure and certain senior management level committees and forums that are
primarily responsible for key risk-related functions. There are additional committees and forums not represented in the chart
that are also responsible for management and oversight of risk.
The Board of Directors provides oversight of risk principally
through the Board of Directors’ Risk Policy Committee
(“DRPC”), Audit Committee and, with respect to
compensation, Compensation & Management Development
Committee. Each committee of the Board oversees
reputation risk issues within its scope of responsibility.
The Directors’ Risk Policy Committee approves and
periodically reviews the primary risk management policies
of the Firm’s global operations and oversees the operation
of the Firm’s global risk management framework. The
committee’s responsibilities include oversight of
management’s exercise of its responsibility to assess and
manage: (i) credit risk, market risk, liquidity risk, model
risk, structural interest rate risk, principal risk and country
risk; (ii) the governance frameworks or policies for
operational, fiduciary, reputational risks and the New
Business Initiative Approval (“NBIA”) process; and (iii)
capital and liquidity planning and analysis. The DRPC
reviews the firmwide value-at-risk and market stress
tolerances, as well as any other parameter tolerances
established by management in accordance with the Firm’s
Risk Appetite Policy. It reviews reports of significant issues
identified by risk management officers, including reports
describing the Firm’s credit risk profile, and information
about concentrations and country risks. The Firm’s CRO, LOB
CROs, LOB CEOs, heads of risk for Country Risk, Market Risk,
Structural Interest Rate Risk, Liquidity Risk, Principal Risk,
Wholesale Credit Risk, Consumer Credit Risk, Model Risk,
Risk Management Policy, Reputation Risk Governance,
Fiduciary Risk Governance, and Operational Risk
Governance (all referred to as Firmwide Risk Executives)
meet with and provide updates to the DRPC. Additionally,
breaches in risk appetite tolerances, liquidity issues that
may have a material adverse impact on the Firm and other
significant matters as determined by the CRO or Firmwide
functions with risk responsibility are escalated to the DRPC.