[MUSIC PLAYING] Hi, I'm Phil Ferraro-- JP Morgan's Global Head of our Client Cybersecurity Education Program. At JP Morgan, cybersecurity is a top priority for the firm. JP Morgan has made significant investments in cybersecurity and fraud prevention over the past several years.

As an industry needing financial services firm, we are a natural target for cybercriminals. We see and prevent the latest techniques criminals are using to acquire what they're after-- your money. We spend over $600 million every year just on cybersecurity-- and that includes many specialized programs designed to protect you, our clients, and your accounts.

These programs include things like encrypting your data when it's at rest, as well as when it's in use, and running sophisticated fraud mechanisms behind the scenes looking for any unusual activities. For you as a JP Morgan Asset Management client, we have a well-established, highly regarded program called Protect the Client-- it was designed specifically to address your cybersecurity needs.

Our goal is to work closely with you and educate you on cyber threats, vulnerabilities and risks, and actions that you can take immediately to raise your cybersecurity hygiene level. The program consists of several different modules where we teach you, not only how to be safe at work, also be safe at home. We talk about things like passwords, phishing, email, public and personal Wi-Fi, reducing vulnerabilities on your mobile devices, social engineering, preventing identity theft, and much, much more.

So our goal is to make sure that each of you has all the information you need to better protect yourselves, your families, and your businesses. We want to make you just as smart as we are on cybersecurity. For more information, please, reach out to your JP Morgan coverage team. And now, I'd like to turn it over to Gary Krivo from Risk Management.

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Hi, I'm Gary Krivo, Chief Risk Officer of Asset Management Americas. At JP Morgan, risk management is core to who we are-- and not only for our 70 member asset management risk team, but for every portfolio manager, and every employee in asset management. To be truly effective, a risk management function must be both forward looking and wide ranging.

For example, in investment risk, we run a series of regular stress tests both BAU and ad hoc on each account and set thresholds for each of them. For liquidity risk, we analyze the underlying liquidity against the largest outflows and investor concentrations. For counterparty risk, we set stress thresholds at both the account and counterparty level.

For each of these frameworks is strong governance and escalation structure is also essential to ensure an in-depth risk review of all thresholds with ultimate review and sign off by our CEO of Asset Management. In order to manage all this data, we utilize our own internal risk analytics engine called Newton.

Newton utilizes the latest big data technology across over 22 million positions to process and facilitate in-depth risk analysis, monitoring, and reporting across all regions and products. We are also prepared for when markets become [INAUDIBLE], like they did during the coronavirus crisis.

We enacted a stress markets protocol which allows for real time, deep dive reviews utilizing an accelerated risk oversight process. During the height of volatility, a rapid response report was produced and reviewed daily with both senior management and the investment teams highlighting key metrics including-- stress, liquidity, flows, and performance across all asset classes.

To sum it up, timely information, the right information, and the right people in place to make key decisions during this and any future market crisis. We are proud of our risk management framework at JP Morgan and I hope this gives you a flavor of the central role that risk management indeed plays at our firm. Now, I would like to hand it off to our Business Resiliency team.

Hello, I'm Karen Trapani-- Global Head of AWM Operations Control Management and Business Resiliency. Our mission is to proactively identify risks and ensure timely remediation of these risks in order to minimize the impact of business disruption to our firm, clients, customers, and markets. During these unprecedented times, between the pandemic, widespread protests, wildfires, and hurricanes it is even more prevalent to have a strong and robust business resiliency program.

Kimara Bonhomme, the Global Head of AWM Business Resiliency, can share more about the tremendous efforts her and her team has taken to keep AWM resilient.

Thank you, Karen. While we encounter new challenges every day, my team is continually focused on providing continuity of client services while protecting the firm's employees and assets. Before an incident, we take multiple actions to ensure readiness at all times. We achieve this by working closely with senior business leaders to develop comprehensive resiliency plans and test these plans regularly.

We also conduct training and exercises that will increase proficiency, and understanding of response and recovery with our key employees. During an incident, life safety is our utmost priority-- partnered with the firm's global security team, we obtain accountability of every one of our employee that may be impacted during the event.

As we are accounting for the safety of our employees, we are simultaneously working with the business and working the resiliency strategies. This may include transfer work to another non-impacted locations while moving our people. During these events we make certain there is constant communication with our many stakeholders.

After incident, we look at what we can do better-- areas we can be more innovative, and spaces where we can build stronger partnerships. Our team has followed the same model that accounts for employees across the goal located in major cities around the world. The strength of our business resiliency program is built of concrete set of controls.

And together, as the first line of defense, we work closely with business partners to understand their processes, and identify, and mitigate risk in those processes in the event of an incident.

Spot on Kimara. To protect our client's interests and assets, we are more resilient every day through strong teamwork across the firm.

The key to our success is exactly that, Karen. We do not operate alone, we engage with senior management to proactively manage risks to incorporate appropriate mitigations and controls, meeting our regulatory expectations, and developing resiliency plans based on impact analysis and criticality. Our program assures we fight best in class resiliency capabilities through a collaborative environment and to orchestrate it across the firm. We are committed to providing the highest quality operation resilience for you, our clients.

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