JP Morgan IB Risk
Hey all. I just searched throughout the site and found only outdated and unhelpful info on the IB Risk analyst program at JP Morgan. What questions should I expect at a first round interview?
This is being held on site at JP Morgan and not on campus. I've been preparing for ib interviews and have been poring over both the WSO guides and Merger and Inquisitions guide. What kind of q's could I expect to be asked about risk? Thanks
Q: If you're working on a revolver for x-type of company, what kind of collateral do you want?
A: E.g., for a retail company, you want inventory less a 20% haircut.
Good luck
Thanks topper. I guess that falls into one category of risk questions. Should I be expecting for technical questions or fit questions for my first round?
JP loves fit questions. $5 says you'll get a question like "What's the biggest risk you've ever taken?" Of course, be ready with examples of when you worked on a team, made a mistake, etc.
When it comes to technicals, they don't get too hard unless you come from a finance background. If you don't have much of a finance background, it'll be something like: "Which is more expensive, debt or equity?" Also, expect some variation of "If I gave you ten million dollars, what would you do with it?" You can answer with some obscure investments that you can make that show your interest in finance and current events, or you could be creative and say "I'd put it into building infrastructure in Africa, because only once they have roads and electricity will they ever be able to develop a market economy. In 10 years, I expect the money to have generated x-% return.
If you do have a finance background, chances are that you'll get a WACC question or a valuation question. Since Risk valuations often look at discrete asset values or market/ebitda multiples (especially when determining loss-given-default scenarios), impress your interviewer with a knowledge of those topics.
Is JPM IB Risk front office? I've always wondered because it has IB in its name. Reason I'm wondering is not to say "front office is better than back office" but rather would it be detrimental to go into the interview saying " I want to do ibanking" And tailor your questions to banking while IB Risk isn't a front office role.
It's definitely front office.
When a client comes in and wants to do a deal at JPM, 3 groups go into the meeting. The industry coverage people are the ones who bring in the business/use modeling to show clients why they should do a deal. The product team, i.e. Debt Capital Markets or Equity Capital Markets, specializing in the type of instrument to be used advises on pricing. Lastly IB Risk structures the deal and looks out for any risk the firm retains. Once clients figure out that IB RIsk holds the purse strings, they tend to keep in touch with the IB Risk group assigned to their deal--this often includes invites for onsite due diligence. Utimately, IB Risk has the authority to veto a deal if they think it's too risky for the firm.
IB Risk also houses the workout group that focuses on distressed companies and the Sovereign ratings advisory group, which advises governments on how to boost their agency ratings.
You are absolutely clueless dude. Read the fucking job description for IB risk. It's the exact same role as risk in CS, GS or any other bank. JP morgan just adds IB in front of everything to differentiate the fact that you're doing this for the investment bank instead of the commercial bank. They do the same thing with operations.
http://careers.jpmorgan.com/student/jpmorgan/careers/us/business/risk
This is a bo/mo role. It does not generate revenue. If you go in acting like it's a front office role or as if you're interviewing for an investment banking position, you will look retarded.
The interview will be mostly fit. They ask the questions mentioned above. Be able to answer "Walk me through a DCF", "What happens if there is now $100 depreciation", etc. The typical IB technical questions.
New1987,
JP's IB Risk is completely different. True the market risk group might be a bit more back office than the rest of IB Risk, but each of the industry teams directly interfaces with clients. By definition, that's front office.
The risk team has absolutely no decision making power to accept/decline deals. Those are up to the bankers to decide. I have seen some really crap deals go through the risk pipeline that, on a fundamental credit basis, the bank should not lend money to the company, but they do it for other relationship driven purposes.
JP Morgan IB Risk Summer Analyst Questions (Originally Posted: 01/14/2016)
I recently accepted a position with JP Morgan as a 2016 IB Risk Summer Analyst (Credit Risk), and am incredibly excited for this summer to start. With that being said, I have several questions that I was hoping could be answered on this forum.
1) GROUPS: What groups are considered to be the best at JP Morgan and in IB Risk? When/how are we assigned to groups? Which groups have the highest retention rate? Which groups have the best lateral mobility within the firm? Are there any ways to prepare for a potential interview to get in a group?
2) TRAINING: IB Risk gets the same training as regular IB, correct? What exactly do they teach you during training and is there anything I can learn ahead of time to better prepare myself?
3) LOGISTICS: Does anyone know roughly the dates and how long the program lasts for? When will you find out if you were offered full time or not? When is the background check and drug test and do I need to do anything logistically prior to the start of the program?
4) MOBILITY: I know that I need to tread lightly when it comes to this subject, however I want to be cognoscente of mobility options prior to going into the internship. How often do IB risk SAs switch into a coverage IB role or a Capital markets Role for the start of full time? How exactly do you go about this transition without raising any red flags with your current group?
5) DAY TO DAY: Typically what are the hours in IB Risk as a SA and 1st year Analyst? How discounted are bonuses compared to IB and Capital Markets? Do SAs get blackberrys for the summer? What are SAs and 1st year analysts doing on a most typical day (if there is even such a thing)
I know that this is a hefty list of questions, but I do greatly appreciate any and all insight.
Thank you in advance.
bump!!
bump!
JPM IB Risk interview (Originally Posted: 10/13/2009)
I have a finance interview for the JPM IB Risk Graduate programme next week and would like to have some advice on how to prepare.
The interviews will be competency based. What sort of questions should I expect? General IB/finance related questions? I am primarily interested in credit risk mgmnt, which I wrote in my application...
What do you know (or have you heard) about the programme? What is the work like in terms of hours, compensation, client exposure, exit ops etc.?
Thanks for your help.
Is this through on campus recruiting?
Standard application through website.
bump, any info?
http://www.wallstreetoasis.com/forums/jpmorgan-ib-risk-bonuses
I meant info on the type of interview questions they'd ask. Is it similar to IBD interview questions?
Is this for Credit Risk or Market Risk? Market RIsk should be similar to S&T interviews. Credit Risk should be more similar to IBD (be able to identify how to read a balance sheet, know the different credit metrics and leverage ratios, etc).
bump
JP IB Risk (Originally Posted: 02/05/2013)
I searched around here a bit and didn't get much clarity on what JP's IB Risk really is. I'm from a non-target school and I'm going to their superday this Friday. I'm actually really interested in risk management, but will I be interviewed like its an IB position? I interned at S&T with Citi last year and the hardest technical question i got was how much you would pay for a zero coupon bond with infinite maturity, which wasn't that hard at all. I'm really just looking for information on this group in general and what the interview might be like.
Thanks for any help!
It depends, IB Risk is broken down into: Special Credits, Credit Risk, Market Risk, and Country Risk. Do you know what group in IB Risk you'll be interviewing with?
I actually asked that in the 1st round and they said you still interview for all of them, and then if you get an offer you will talk with people over the next couple months and then they'll place you
Fairly certain there's "operations risk" as well. Avoid that one.
I was invited to the superday this Friday after applying online (no first round or anything, no contacts). I can't go though because I already committed to another superday. However, I interviewed with GS for market risk and the interview was 90% technical (duration, convexity, gamma/theta relationships of options, effects of changing vol on option Greeks, time spread characteristics, credit risk, CDS spreads, current macro events, FX forward pricing, covered interest rate parity, Monte Carlo simulation, and basic statistics/probability, just to name a few). Essentially it was rapid fire technicals for 30 minutes and I got them all right. I interviewed with a physics PhD and a MFE, so I expected the interview to be technical from the start. I have no idea how technical JPM risk might be, but be ready for anything. Good luck!
hey nontargetkid, congrats!
I was wondering if you are from a nontarget school based on your account name? does anyone know if nontarget and target schools have different superdays for jpm ib risk?
Yes, I am from what you would consider a nontarget school. Whether or not there are target and nontarget superdays is irrelevant. You should go into the superday and crush the interviews regardless of which situation it is.
haha thanks for the response. I wasn't saying that I wasn't gonna go if I did receive one - just heard some mixed things about target schools and nontarget schools having a different process - but yes,you're right, should go into super days with that kind of mindset. haha
but I had my first round today.
Did both of you guys hear back for it today? I did 1st round last week, wouldn't be able to go Friday because of another superday but still want to know if I got it.
for IB Risk you probably should have heard back on friday the 1st
Yes, I received an invitation to the superday on the 1st. However, I never even did a first round interview.
Looks like I'll see ya there bradpitch. Interested in finding out more too.
Hi Brad,
I interned there 2 summers ago, if you want to drop me a PM I can answer questions you might have.
-Jochen
Will do
I did the IB Risk superday last year for SA, and it was just 3 interviews (all with MD's). One focused on commodities risk (questions were pretty basic, just asking to assess risk a oil refining counterparty), one from hedge fund risk (hardest interview, questions about options, generally understanding hedge funds), and the last was from market risk (pretty much entirely fit).
I would say the questions could vary considerably based on who interviews you, but I would recommend preparing for talking to MD's, not analysts.
Anyone hear back?
not yet, they said we probably wouldn't until wednesday
Yeah I know but I figured it was just typical HR BS
well i think theres three of us here that were there so we'll find out pretty soon. were your interviews tough at all?
I'd say 2 went real well. One didnt. Interview was going really well then he began grilling something on my resume like I'd never experienced before. Especially since the resume is the most routine part that I had most answers down. Got thrown a curve ball nd I couldn't remember so I stumbled and became pretty nervous and said some obvious BS stuff. It didn't help that when he asked me a technical, instead of answering with the obvious answer I answered with a more technical answer and he laughed in my face, even though I was right. Real shitty. Oh well, learning experience.
Goddamn it it is Thursday already..
Hey bros,
I did the superday interview too...did any of you hear back? They said Wednesday (yesterday), but I'm still waiting and I feel like it isn't a good sign obviously if some of you heard back and I haven't.
I haven't heard back either, I'm hella worried but it also seems that no one else has heard back. Has anyone yet?
They are still evaluating candidates from what I heard from HR.
Better sit tight and relax.
Seemed to me that last Friday they had about 25 people (could only be less). How many are they going to take?
Any update? I still haven't heard back myself.
nothing here, maybe they thought we all sucked or something lol. I really wanna email HR askin whats up
Yeah same here. Honestly I think we might not be accepted nor rejected. My guess is they extended acceptances to certain people and if they decline then they might take us. I mean it's been a while...
Nontarget offers for IB risk at JPM should be received already, sorry guys. JackedCity is right, if you haven't heard that means you're on a list.
Thanks Jochen-
Any idea how long it would take for them to officially notify people in our position?
That sucks! HR did reply my email though.
what did they say?
Bump! Any updates?
I emailed HR and they havent responded yet...don't know what that means.
Yeah i think it's safe to give up by now
Asked to go there for market risk interview
They called you today?
.
Interview with JPM IB Risk (Originally Posted: 01/28/2012)
Other than the regular ib fit & technical questions, what else should I expect for the 1st round interview with JPM IB Risk?
Know about debt contracts. Know what credit risk is. Know what covenants are. Also have a good answer to why Risk and not IB analyst. They kind of always know you might be using this to get into IB but you have to show them why Risk because it is not a job people dream about in general.
JPM CIB Risk Exit Opp? (Originally Posted: 11/23/2015)
?
Exit opps: a well regarded division but doesn't quite offer the same opps as IBD. After 2-3 years, most analysts opt to internally move to coverage/capital markets/research groups, b-school (M7), corp dev/strategy, or associate promote. There are a few that do successfully move to credit and PE funds.
Learning curve: definitely steep (very few get associate promote) but lesser than that of IBD.
Appreciate the info, million thanks!
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