JP Morgan loss highlights lack of risk experts on bank committees
JP Morgan’s recent trading loss has drawn attention to a lack of relevant experience on the bank’s three-person risk committee. Other dealers fare better, but of 73 risk committee members at 15 big dealers, only four have held senior risk management roles. By Lukas Becker
While studying tables compiled by Risk on the make-up of bank risk committees (see table A, below), a former chief risk officer (CRO) stops at one institution and gasps. “That can’t be the risk committee,” he says. Then, after a nervous laugh: “Are you sure? You’re not missing a couple of people? That’s extraordinary. It’s just completely extraordinary. I’m speechless.”
The bank was JP Morgan
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