J.P. Morgan system manages trading risk.

NEW YORK -- J.P. Morgan & Co. is launching a new systematic tool for risk management.

Morgan's Riskmetrics system, unveiled Monday, contains the volatility and correlation data needed to enable a firm to produce for each trading position an estimate of how much could be lost over the next 24 hours if the market moved in an unfavorable direction.

The company noted that the use of a consistent measure to calculate market risk over a defined time horizon was among the recommendations of the 1993 "Group of 30" derivatives study, which was headed by J.P. Morgan chariman Dennis Weatherstone.

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