The document discusses the necessity of a change management plan following various financial acquisitions and crises faced by JPMorgan Chase. It outlines the implementation of a structured approach to risk management through team collaboration, setting clear goals, and fostering a risk-aware culture. Success measures include the alignment of business strategy with risk management and regular reviews by leadership to reduce financial losses.

1. Lauren Foisy, Rodrigo Jardim, Carlos Mota and Ali Akbar Sahiwala

3. Why a Change Management Plan?

5. 2000
Merged with the
Chase Manhattan Co
2004
Acquisition of
Bank One
2007
Beginning of the
Financial Crash
2008
Acquisition of Bear
Stearns
2008
Acquisition of
Washington Mutual
2012
Total losses of
$6.25 Billion
2014
Mike Cavanagh
resigns JPMC,
CEO of Corporate
Investment Banking
Implementing Change
Moving Forward

7. CREDIT RISK COUNTRY RISK MARKET RISK SPECIAL CREDITS

8. COUNTRY
RISK
REPORTING
TEAM
MARKETING
TEAM
TECHNOLOGY
TEAM

9. SHARED
VALUES
STYLE
STAFF
SKILLS
STRATEGY
STRUCTURE
SYSTEMS
SHARED
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.

10. 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

12. 6 months 6 months 12 months
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

13. Create Urgency
CREATE THE
CLIMATE
ENGAGE &
ENABLE
- Identify high-risk
scenarios with 75%
management buy-in
- Host honest discussions
among all teams
Form a Team
- Appoint Change Leaders
as leaders in Phase 1
- Create Change Team by
Phase 3 spanning all
departments and job
positions
Make a Vision
- Improve effective risk
analysis, profitability and
sustainability over time
through increased
interaction and
communication
Communicate It
- Present to staff and get
collect feedback
- Host bi-weekly meetings

14. IMPLEMENT
& SUSTAIN
Clear Obstacles
- Involve senior
management to mitigate
obstacles
- If employees resist
change, they will be
addressed individually
Celebrate Wins
- Goals will be established
and monitored on a six
month cycle
- Targets met will be
celebrated among staff
- Bonuses offered
Build on Change
- Every six months,
evaluate successes and
determine improvements
- Establish new goals as
necessary, incorporating
lessons learned
Anchor Change
- Motivate others to join by
promoting team through
incentives
- As new employees join,
explaing vision of the
change vision

15. “The development of a risk culture
throughout the firm is perhaps the
most fundamental tool for effective
risk management.”
Institute of International Finance, 2008

16. 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

17. “First-class
business in a
first-class way”

18. THANK YOU