Abstract

JP Morgan Chase (JP), the second largest financial services company in the US, is exposed to credit risk through its lending, trading and capital market activities. JP''s credit risk management practices are designed to preserve the independence and integrity of the risk assessment process. JP has taken various steps to ensure that credit risks are adequately assessed, monitored and managed. In early 2003, JP has combined its Credit Risk Policy and Global Credit Management functions to form Global Credit Risk Management consisting of the five primary functions - Credit Risk Management, Credit Portfolio Group, Policy & Strategic Group, Special Credits Group and Chase Financial Services (CFS) Consumer Credit Management Risk.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

JP Morgan Chase, Credit risk, Commercial portfolio, Consumer credit risk, Consumer portfolio, Derivatives, Economic credit exposure, Derivative receivables, Commercial exposure, Commercial criticised exposure, Industry concentrations, Country exposure, Derivative contracts, Notional amounts