Barclays 2014 Annual Report Download - page 133

barclays.com/annualreport Barclays PLC Annual Report 2014 I 131
Traded
■ Interest rate risk
■ Spread risk
■ Foreign exchange risk
■ Equity risk
■ Commodity risk
■ Inflation risk
■ Traded credit risk
■ Basis risk
Investment Bank
Treasury
BAGL
Barclays Non-Core
Personal and Corporate
Banking
Barclaycard
Africa Banking
Barclays Non-Core
Pension Fund
Trustees and Barclays
Central functions
Pension
■ Discount rate risk
■ Inflation risk
■ Asset value risk
■ Longevity
■ Member choices
Non-traded
■ Interest rate risk
■ Foreign exchange risk
■ Structural interest rate risk
■ Direct interest rate risk
■ Prepayment risk
■ Recruitment risk
■ Lag risk
■ Funding spread risk
Group Market Risk
■ Traded products risk review
■ Investment Committee
■ Conformance reviews
■ Absa Market Risk Committee
■ Treasury Committee
■ Treasury Hedge Committee
■ Asset and Liability Committees
■ New product sign-off process
■ Conformance reviews
■ Pension management group
■ Pension Executive Board
Africa Banking
Insurance
■ Underwriting
■ Re-insurance
■ Reserving
■ Asset liquidity management
■ Investment management
■ Investment Risk Committee
■ Underwriting Review Committee
■ Actuarial Review Committee
Overview of the business market risk control structure
Risk type
...managed by
…with oversight and challenge provided by Market Risk Committee and…
Organisation and structure
Traded market risk in the businesses resides primarily in the Investment
Bank, Treasury, Africa Banking and BNC. The businesses have the
mandate to incur traded market risk. Non-traded market risk is mostly
incurred in PCB and Barclaycard.
Market risk oversight and challenge is provided by business
committees, Group committees, including the Market Risk Committee
and Group Market Risk. The chart above gives an overview of the
business control structure.
Roles and responsibilities
The objectives of market risk management are to:
Q Understand and control market risk by robust measurement, limit
setting, reporting and oversight;
Q Facilitate business growth within a controlled and transparent risk
management framework;
Q Ensure that traded market risk in the businesses resides primarily in
certain areas, and that it is controlled according to the allocated
appetite;
Q Control non-traded market risk in line with approved appetite;
Q Control insurance risk in line with approved appetite; and
Q Support the BNC strategy of asset reductions by ensuring that it
remains within agreed risk appetite.
To ensure the above objectives are met, a well-established governance
structure is in place, whereby the risks are identified, assessed,
controlled and reported throughout the organisation.
More information on market risk management can be found in Barclays
PLC Pillar 3 Report.
The Strategic Report Financial review Financial statements Shareholder information
Risk review
Governance