[MUSIC PLAYING] Hello. I'm Vincent Kumaradjaja. I am the Head of Global Fixed Income Risk Management.

Risk management is intrinsic to our fixed income culture, which is built around a careful stewardship of our clients' assets. We employ a rigorous three-tiered approach to managing risk across each and every one of our portfolios. This time-tested process is the key differentiator in our investment process, and it's designed to protect our portfolios, our client, and the reputation of JPMorgan Chase.

The first level of risk management is our CIOs and portfolio managers who are monitoring risk daily as part of their investment decisions. The second layer is our embedded fixed income risk management team, who provide risk oversight and analytic support across fixed income. The third layer is our independent research team that reports directly to the Chief Risk Officer of JPMorgan Chase.

As one of the world's largest banks, we face an additional layer of scrutiny that benefits our clients. We are subject to a high level of regulatory oversight and reporting and held to extremely high standards in our internal oversight and controls. As such, we have built processes and controls to thrive in this environment. And for our institutional clients who are subject to similar oversight, we understand their issues and can fully support their needs, from customized investment constraints to enhanced regulatory reporting.

The embedded fixed income risk management team provides risk oversight and analytics to support all investment teams within GFIC. We have a keen focus on managing downside risk given the asymmetric nature of fixed income, with small gains on one side and large potential losses on the other.

The essential component of our risk framework is the use of spectrum risk tools. Spectrum integrates sophisticated risk analytics and a wealth of data to provide portfolio managers and risk managers with a uniform view of downside risk across the platform.

There are many applications covering a wide range of risk functions in Spectrum, ranging from risk control to analysis and to management reporting. First, let's discuss tracking error. This provide an overview of visualization across an investment strategy. Portfolio managers then can drill down further to see the details. There is attribution, historical analysis, and risk concentration. Within spectrum, we can also stressed a variety of risk measures so that different risk profiles on the various market conditions can be visualized in order to support this investment decision. In addition to risk control tools, portfolio managers can utilize a variety of scenario tools to analyze, changes to risk profile before making any implementation decisions.

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