Breaking Down JPMorgan Chase’s +$600 Million Cybersecurity Budget
In his 2018 Annual Report, Jamie Dimon, Chairman and CEO of JPMorgan Chase, wrote, “The threat of cybersecurity may very well be the biggest threat to the U.S. financial system.” Mr. Dimon also noted that the firm spends nearly $600 million a year on cybersecurity-related efforts and has more than “3,000 employees deployed to this mission in some way.” JPMorgan Chase is the largest bank in the United States with total assets of around $2.7 trillion in US dollars. In the following sections, I will examine what percent of total spending should be directed at cybersecurity at JPMorgan Chase by leveraging the Gordon-Loeb Model (GL Model) for cybersecurity investment. Next, I will detail how this budget should be subdivided across different threats and investment areas. Finally, I will discuss the metrics that will be used to assess the effectiveness of each spending area and how the necessary information will be collected and analyzed.