Barclays 2010 Annual Report Download - page 81

Principal Risk Factor Principal Risk Management Key Specific Risks and Mitigation
10. Financial Crime Risk
Financial Crime Risk is the risk
that the Group suffers losses
as a result of internal and
external fraud or intentional
damage, loss or harm to people,
premises or moveable assets.
The Group Financial Crime Team, Fraud Oversight
Committee and Security Risk Management
Committee provide oversight of the implementation
of the Fraud Risk Control Framework and the
Group Security Risk Control Framework. Oversight
is achieved via conformance reviews and other
review activity undertaken by Group Financial
Crime and within business units.
Monthly reports on fraud losses across the Group
are produced for the Fraud Oversight Committee
which monitors these events and considers the
actions to be taken on a case by case basis. Where
relevant, the Fraud Oversight Committee takes
actions to drive remediation of the root cause
of such events.
Quarterly Financial Crime reports are submitted
to the Group Risk Oversight Committee and Board
Risk Committee.
As a major financial institution, Barclays is a target for
financial crime. The Group has frameworks and systems
in place to enable it to respond to threats to both the
organisation and its customers as they emerge.
11. Technology Risk
Technology Risk includes the
non-availability of IT systems,
inadequate design and testing
of new and changed IT
solutions and inadequate IT
system security. Data privacy
issues are covered under
Regulatory Risk and external
supplier issues relating to
technology are covered under
Operations Risk.
Technology is a key business enabler and requires
an appropriate level of control to ensure that the
most significant technology risks are effectively
managed. Technology Risk is managed through
a formal risk governance framework. A set of Key
Risk Indicators (KRIs), consistent across Business
Units, is periodically collated and reviewed by
management. Each KRI has a specific target state,
defining the Group’s attitude to risk. Any areas
falling short of this standard are highlighted to
management for action.
Regular technology risk reporting is provided to the
Group Operating Committee, the Governance and
Control Committee and the Board Audit Committee.
Similar to many large organisations, Barclays is exposed
to the risk that systems may not be continually available.
This risk is monitored closely and enhancements to certain
key systems are being undertaken.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 79
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