RISK REVIEW OF THE PRIVATE EQUITY

PROCESS

Summer Internship Program Project Report

Submitted in Partial fulfillment of the requirements for the
PGDM Program

By:

Shubhangi Sharma
15PGDM052

Supervisors:
1. Riddhi Desai

2. Sanjay Dhamija

International Management Institute, New Delhi

2015-2017
Abstract:

The department allocated to me is Investor Relations Processing which currently is looking after private
equity fund services. J. P. Morgan is a world class outsourced administration provider to the private equity
firms and institutional investors who can leverage on the expertise of J.P. Morgan while putting their
efforts to best use. The services provided ranges from client onboarding, capital call and distribution
management, subscription services to investors tracking and relations support. The services are provided
all around the clock and involves harmonization among various teams performing different sub-processes
in different time zones. J. P. Morgan promises a secure, confidential and highly controlled operating
environment to its clients as the data is highly sensitive that any breach of data with respect to its
confidentiality, integrity and availability can have far reaching consequences for the company ranging
from client dissatisfaction, reputational risk and/or legal risk resulting in financial loss. The project is to
understand the end to end process of the Private Equity and identify and analyse the control breakdown
points and coordinate with the OCM Team on risk and controls to improve the overall accuracy and
rigorousness of the process.

Goals:

 Drafting of end to end process map of Private Equity Process and mapping of the whole process
 Analysis of various risk/control packs provided by the teams such as RCSA and, Risk Register
 Identifying and analyzing the failure modes and control break down points using tools like FMEA
 Coordinating with the OCM Team to improve and strengthen the control measures to make the
process more robust and error free
Business process mapping is the strategic analysis of identifying and creating a visual depiction of the
process flow of various activities of a firm. The project involves mapping the process of private equity
through process flows which will help in documentation of the process, workflow management and serve
as a troubleshooting guide. The project involves the risk measure of the process which involves highly
sensitive data and any error can compound and can have serious implications for the team/company. The
analysis will provide a fresh point of view and assist in improving the control packs already in place.

Proposed Methodology:

 Requirements Gathering:
 Primary research : making real-time observations of the processes by sitting with the team
members, interactive sessions with buddy and mentor
 Secondary research : understanding the various processes by going through the Standard
Operating Procedures, evaluating the control measures by studying the checklists

 Mapping of the Private Equity Process:

 Using Microsoft Visio to prepare the process flows of various activities of the process

 Conducting Failure Mode and Effect Analysis:

 Studying the historical data of the past failures and errors
 Assessing the consequences of the breakdowns
 Analysing the severity and ease of detection of such failures and errors
 Using the above as inputs for conducting FMEA
  Coordinating with OCM Team for risk measure
 Interactive sessions with the OCM team on risk and control
 Analyses of the existing control measures and the control breakdown points
 Conducting feasibility study for the suggestions made
 Implementation of the recommendations, if any

Time Activity Schedule:

Timeline for the project
Date Activity Status
Understanding about JPMC, its Line of Businesses (LOB), Corporate & Investment
Banking (CIB) operations Completed
Gaining insight into the concept and functioning of Private Equity Completed
Understanding the various software, tools and entities involved in the Private Equity
11.04.16 - 22.04.16 Process Completed
Drafting of end to end to end process map of Posting process in Private Equity Completed
Understanding processes like Maintenance and Subscription Documents by going
through the Standard Operating Procedure (SOPs) Completed
Make real-time observations of the processes by sitting with the team members while
25.04.16 - 06.05.16 they perform different activities Completed
Mapping of the other processes like Maintenance, FATCA of the Private Equity
process Completed
Analysis of various risk/control packs provided by the team such as RCSA, Risk
Register In-Progress
09.05.16 - 20.05.16 Risk Review and analysis of the control breakdown -
Coordinating with the OCM Team on risk and control and conducting a feasibility
study for the suggestions -
23.04.16 - 03.06.16 Implementation of the feasible ideas/suggestions (if any) -

Other Activities:

Case study: The interns of the company across the two locations are divided into groups and presented
with a case study involving a business scenario followed by several questions. The analysis and solutions
to these problems will be presented to the senior management Panel. This initiative provides us with an
opportunity to bond with other interns and cross Line of Business learning.

Senior Leadership sessions: To provide a platform for the interns to interact, learn and get answers to
their queries, a series of six senior leadership sessions will be conducted. Out of these, three have already
been conducted. The topics covered were performance management and presentation skills.

Trainings: In addition to induction, several trainings have been provided to the interns to acquaint
themselves to their Line of Business, the process and the products of the company. Both online and offline
trainings are imparted. Trainings sessions from team members and buddy to know the BAU (Business As
Usual) were also undertaken.

References:

 http://www.investopedia.com/
 http://www.breezetree.com/articles/top-reasons-to-flowchart.htm
…………………………………… ……………………………………
Signature of Project Guide with seal Signature of the Student

Date:

(For office use only)

Received on: Checked by: Entered by:

Name& signature of faculty mentor assigned to the student:

……………………… ……………………………
Signature of Director Chairperson, PGDM/PGDMHR/PGDMB&FS