Barclays 2009 Annual Report Download - page 90

88 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Risk management
Barclays risk management strategy
continued
The Board Audit Committee receives quarterly reports on control issues
of significance and a half-yearly review of the adequacy of impairment
allowances, which it reviews relative to the risk inherent in the portfolios, the
business environment, the Group’s policies and methodologies and the
performance trends of peer banks. The Chair of the Board Audit Committee
also sits on the Board Risk Committee. See page 159 for additional details on
the membership and activities of the Board Audit Committee.
The Board HR and Remuneration Committee receives advice from the
Board Risk Committee on the management of remuneration risk, including
advice on the setting of performance objectives in the context of incentive
packages.
Summaries of the relevant business, professional and risk management
experience of the Directors of the Board are given on pages 10 and 11. The
terms of reference for each of the principal Board Committees are available
from the Corporate Governance section at: www.aboutbarclays.com.
The Chief Risk Officer is a member of the Executive Committee and has
overall day to day accountability for risk management under delegated
authority from the Finance Director. The Finance Director must consult the
Chairman of the Board Risk Committee in respect of the Chief Risk Officer’s
performance appraisal and compensation as well as all appointments to or
departures from the role.
Governance structure at Group level
Board oversight
Assurance
Risk adjusted performance
Board Audit Committee Board Risk Committee
Assurance Reporting and control
Board
Internal Audit
Group Chief Executive
Group Executive Committee
Governance and Control Committee Treasury CommitteeGroup Risk Oversight Committee
Authority controls appetite
Board HR and Remuneration Committee
– Approves overall Group Risk Appetite.
– Monitors and manages risk adjusted
performance of businesses.
– Assesses the adequacy and effectiveness
of the Group Control Framework.
– Assesses management assurance processes.
– Considers the adequacy and effectiveness
of the Group Control Framework.
– Reviews reports on control issues of
Group-level significance.
– Review the Group risk profile.
– Approves the Group Control Framework.
– Approves minimum control requirements
for principal risks.
– Reviews the adequacy and effectiveness
of the Group Control Framework.
– Monitors compliance with the Framework
including remediation of significant
control issues.
– Reviews reports on control issues of
Group-level significance.
– Sets policy/controls for liquidity, maturity
transformation and structural interest
rate exposure.
– Monitors the Group’s liquidity and interest
rate maturity mismatch.
– Monitors usage of regulatory and
economic capital.
– Oversees the management of the
Group’s capital plan.
– Monitors risk profile in respect to
risk appetite.
– Debates and agrees actions on the risk
profile and risk strategy across the Group.
– Considers issues escalated by Risk Type
Heads and Business Risk Directors.
Note
The governance structure will not change following the restructure of the Group announced in November 2009.