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Simple Ethics Rules for Better Risk Management

Harvard Business Review

But as more organizations fall prey to complex intangible risks, from unwanted disclosure due to rampant cyber threats to breaches of conduct driven by skewed incentive systems, the aperture of risk management is expanding from protecting the balance sheet to promoting ethical leadership and values-based decision making.

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JP Morgan's Loss: Bigger than "Risk Management"

Harvard Business Review

The recent disclosure of a multi-billion dollar trading loss at JPMorgan Chase reminds us again of the challenge and complexity of risk management, the subject of our June 2012 HBR article, "Managing Risks: A New Framework." Each requires customized risk management processes.

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Two Cheers for JP Morgan's "Clawbacks"

Harvard Business Review

As to all other employees, including Dimon, Cavanaugh said that "2012 performance year compensation and clawbacks, if appropriate, will be determined in the ordinary course." Dimon himself, who oversaw the CIO, could well have his 2012 compensation cut as a result of the trading problems. Drew earned $15.5

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Jamie Dimon’s Pay Raise Sends Mixed Signals on Culture and Accountability

Harvard Business Review

million for 2012, a 74 percent increase. Similarly, commentators have been divided about whether the raise was deserved or not, citing both economic performance (2013 was about the same as 2012) and Dimon’s handling of diverse legal and regulatory issues for support.

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Hack-Proof Your Company's Social Media

Harvard Business Review

The company's Twitter account had been hacked — its name changed to McDonalds and its background replaced with an image of Fish McBites. At the helm of HootSuite, a social media management tool for companies, I've learned that common sense, a little training and the right technology go a long way. On Monday, Feb.

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How CMOs and CROs Can Be Allies

Harvard Business Review

But in the aftermath of the financial crisis, risk managers have become increasingly involved in business strategy and decisions. those without bank accounts), by adopting the more dynamic “customer life cycle” view. The risk function can do the same.

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Can JP Morgan Transparently Police Itself?

Harvard Business Review

In the wake of its significant trading losses (now reportedly rising from $2 to $3 billion or more), JP Morgan can win back some of its lost reputation by transparently holding those responsible to account. A "claw-back" seeks cash or equity already transferred to an individual.