JP Morgan Chase 2015 Annual Report Download - page 119

JPMorgan Chase & Co./2015 Annual Report 109
respective businesses and for operating within a sound
control environment.
In addition to the Risk Management Organization, the Firm’s
control environment also includes firmwide functions like
Oversight and Control, Compliance and Internal Audit.
The Firmwide Oversight and Control Group consists of
dedicated control officers within each of the lines of
business and corporate functions, as well as a central
oversight function. The group is charged with enhancing the
Firm’s control environment by looking within and across the
lines of business and corporate functions to identify and
remediate control issues. The group enables the Firm to
detect control problems more quickly, escalate issues
promptly and engage other stakeholders to understand
common themes and interdependencies among the various
parts of the Firm.
Each line of business is accountable for managing its
compliance risk. The Firm’s Compliance Organization
(“Compliance”), which is independent of the lines of
business, works closely with the Operating Committee and
management to provide independent review, monitoring
and oversight of business operations with a focus on
compliance with the legal and regulatory obligations
applicable to the offering of the Firm’s products and
services to clients and customers.
Internal Audit, a function independent of the businesses,
Compliance and the Risk Management Organization, tests
and evaluates the Firm’s risk governance and management,
as well as its internal control processes. This function brings
a systematic and disciplined approach to evaluating and
improving the effectiveness of the Firm’s governance, risk
management and internal control processes.
Risk governance structure
The independent status of the Risk Management
Organization is supported by a governance structure that
provides for escalation of risk issues up to senior
management and the Board of Directors.
The chart below illustrates the key senior management level committees in the Firm’s risk governance structure. Other
committees and forums are in place that are responsible for management and oversight of risk, although they are not shown in
the chart below.
The Board of Directors provides oversight of risk principally through the DRPC, Audit Committee and, with respect to
compensation and other management-related matters, Compensation & Management Development Committee. Each
committee of the Board oversees reputation risk issues within its scope of responsibility.