▁port folio ▁h ed ging . ▁Front ▁office ▁market ▁risk ▁activities ▁provide ▁service ▁to ▁invest ors ▁via ▁derivative ▁solutions , ▁port folio ▁management , ▁port folio ▁consult ing , ▁and ▁risk ▁advis ory . ▁Well - known ▁risk ▁groups ▁in ▁J PM organ ▁Ch ase , ▁Morgan ▁Stanley , ▁Gold man ▁Sach s ▁and ▁Bar cl ays ▁eng age ▁in ▁re venue - gener ating ▁activities ▁involving ▁deb t ▁struct uring , ▁rest ruct uring , ▁synd ic ated ▁lo ans , ▁and ▁se cur it ization ▁for ▁clients ▁such ▁as ▁corpor ates , ▁govern ments , ▁and ▁h edge ▁funds . ▁J . P . ▁Morgan ▁IB ▁R isk ▁works ▁with ▁invest ment ▁bank ing ▁to ▁execute ▁transactions ▁and ▁advise ▁invest ors , ▁although ▁its ▁Fin ance ▁& ▁Operation ▁risk ▁groups ▁focus ▁on ▁middle ▁office ▁functions ▁involving ▁internal , ▁non - re venue ▁generating , ▁oper ational ▁risk ▁controls . ▁Cred it ▁default ▁swap , ▁for ▁instance , ▁is ▁a ▁famous ▁credit ▁risk ▁h ed ging ▁solution ▁for ▁clients ▁invent ed ▁by ▁J . P . ▁Morgan ' s ▁B ly the ▁Masters ▁during ▁the ▁ 1 9 9 0 s . ▁The ▁Lo an ▁R isk ▁Sol utions ▁group ▁within ▁Bar cl ays ' ▁invest ment ▁bank ing ▁division ▁and ▁R isk ▁Management ▁and ▁Fin ancing ▁group ▁hous ed ▁in ▁Gold man ▁Sach ' s ▁se cur ities ▁division ▁are ▁client - dri ven ▁franch ises . ▁However , ▁risk ▁management ▁groups ▁such ▁as ▁credit ▁risk , ▁oper ational ▁risk ,