Why This Matters
Why this matters: CFOs and controllers must ensure risk classification accuracy and internal controls over financial reporting, as regulatory penalties for misstatement can reach millions and damage institutional credibility.
JPMorgan has been fined €12.18 million by the European Central Bank for serious negligence in risk reporting, having misclassified corporate exposures and miscalculated risk-weighted assets between 2019 and 2024. The bank's internal control failures resulted in it reporting artificially higher capital ratios and concealing its true risk exposure to regulators across 15-21 consecutive quarters.
Finextra
finextra.com
Finance leaders must understand that inadequate internal controls over risk classification and asset calculations expose institutions to significant regulatory penalties and reputational damage, requiring robust governance frameworks.
JPMorgan has been fined €12.18 million by the European Central Bank for serious negligence in risk reporting
The bank's internal control failures resulted in it reporting artificially higher capital ratios and concealing its true risk exposure to regulators across 15-21 consecutive quarters
Treasury and cash management specialist covering working capital optimization.
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