Service Group in Mexico

Market Risk

Market risk is the exposure to an adverse change in the market value of financial instruments caused by a change in market prices or rates.

Market Risk Management is an integrate part of Risk Management Unit which is independent from the business area and responsible for effective and timely risk administration of the organization.

Main functions of the Market Risk Management include:

  • Identifying, measuring, monitoring and analyzing market risks, ensuring that the risks taken are consistent with the provision of market risk established by the firm's Executive Administrative Board.
  • Consolidating the risk exposure for all areas of the firm subject to market risks.
  • Analyzing the proposed limits of market risk and submitting its recommendation to the Board.
  • Understanding, analyzing, monitoring and reporting on developments and trends in regards to market risk exposure.

Operational Limits

Market risk monitoring is intended to limit the risk incurred by the firm and ensure that the allocation of capital does not exceed the maximum levels approved.

VaR (Value at Risk)

VaR is a statistical risk measure that gauges the potential loss from adverse market moves in an ordinary market environment. VaR, non-statistical measures, stress testing, back testing, risk identification and other risk factors are set taking into account the net worth of J.P. Morgan in Mexico.


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