J.P. Morgan Guide Assists Directors in Assessing Corporate Resilience

J.P. Morgan Structured Products B.V. has issued a guide aimed at assisting corporate boards and leadership in strategically addressing organizational resilience. The publication provides tools and insights for identifying and anticipating future threats, as well as developing contingency plans.

The material emphasizes the increasing importance of resilience planning amidst a landscape of diverse threats, ranging from climate change and geopolitical conflicts to artificial intelligence risks. J.P. Morgan suggests that company leaders must assess their organizations' capacity not only to predict disruptions but also to adapt and recover from them.

According to the guide, engaging in discussions about long-term threats within a board setting can be complicated by ingrained behavioral biases. Immediate business priorities can easily overshadow more distant risks, and the costs of proactive measures may seem higher than the less visible future costs of maintaining the status quo.

The guide incorporates expertise from J.P. Morgan advisors, including Sarah Kapnick, Global Head of Climate Advisory, and Jeff Kreisler, Global Head of Behavioral Science. They highlight that a deliberate, well-framed resilience discussion, supported by a readiness plan, can serve as a governance tool. The publication also offers a framework for facilitating challenging conversations and navigating different approaches to risk perception.