JP Morgan Lost Roughly 6 Billions Dollars due to a small Excel Error
In the high-stakes world of finance, precision is non-negotiable. Yet, even some of the world’s most powerful institutions are vulnerable to human error—especially when it involves the tools we take for granted. In 2012, JPMorgan Chase, one of the largest financial services firms in the world, learned this lesson the hard way when a simple Excel mistake led to a staggering $6 billion loss.The loss stemmed from an error in the bank’s Value-at-Risk (VaR) model—an essential risk management tool used to estimate the potential loss in the value of assets. [...]