There are five basic steps that are taken to manage risk; these steps

are referred to as the risk management process:

1. It begins with identifying risks

2. goes on to analyze risks

3. then the risk is prioritized

4.a solution is implemented

5.and finally, the risk is monitored

Put yourself in the shoes of CEO of JP Morgan Mary Erdoe during the financial crisis of 2007-2008. You have been asked to propose a new risk management framework that would appropriately address any potential threats to JP Morgan's private bank. Follow the risk categorization system as well as the five-step process described from our lecture to propose an effective risk management solution for JP Morgan's Private Bank. An effective solution will properly identify and categorize all risks, analyze and prioritize these risks, and implement a solution that can effectively be monitored. An effective solution will contain a schedule for control implementation and identify responsible persons for those actions.