Barclays 2014 Annual Report Download - page 54

52 I Barclays PLC Annual Report 2014 barclays.com/annualreport
‘Progress continues to be made, with greater
understanding amongst our leaders in terms of how to
make decisions ‘in the right way’, but implementing and
embedding cultural change is a multi-year task.’
Dear Shareholders
A key focus of the Committee has been on monitoring the cultural
change underway in the organisation. By the end of 2013, we had seen
colleagues develop an understanding and connection with Barclays
Purpose and Values. During 2014, the focus was on embedding and
sustaining that change. Progress continues to be made, with greater
understanding amongst our leaders in terms of how to make decisions
‘in the right way’, but implementing and embedding cultural change is
a multi-year task.
There is evidence of a change in approach to conduct risk, with leaders
in the business now responsible for identifying, managing and
mitigating such risk, including the identification of forward looking
risks that could affect their businesses. Net operational risk losses have
improved year-on-year and the measures have moved to within risk
appetite. However, we cannot afford to be complacent given elevated
risk assessments relating to cyber security, information technology and
transaction operations across the financial services sector. In terms of
our high priority reputational risks, we have increased our engagement
with non-governmental organisations, reviewed our policies relating to
the provision of finance to the defence and energy sectors and
examined the management of human rights risks.
Committee performance
The evaluation of the effectiveness of the Committee conducted in
2014 found that the Committee is performing effectively. Please see the
Board evaluation report on pages 60 and 61 for more details. I became
Chairman of the Committee in April 2014, succeeding Sir David Walker,
who played a significant role in establishing the Committee and setting
out the vision for where it would focus its attention and add value.
I would like to thank him and my fellow Committee members for their
hard work and support.
Looking ahead
The landscape continued to change significantly in 2014, with
increased cost pressures, rising customer and external shareholder
expectations and significant organisational change across the Group.
The Committee will continue to focus on embedding cultural change,
the management of conduct risk, including the roll out of key
performance indicators, and ensuring that operational risk is
maintained within our risk appetite.
Reuben Jeffery III
Chairman, Board Conduct, Operational and Reputational Risk Committee
2 March 2015
Note
a The name of the Committee changed from the Board Conduct, Reputation and
Operational Risk Committee in June 2014
Committee composition and meetings
The Committee is composed of independent non-executive Directors,
with the exception of Wendy Lucas-Bull, who the Board has decided
not to deem as independent for the purposes of the UK Corporate
Governance Code, owing to her position as chairman of Barclays Africa
Group Limited. Membership of the Committee remained substantially
the same as the prior year, with the exception that Reuben Jeffery
became Chairman of the Committee on 1 April 2014 when Sir David
Walker stepped down as Chairman of the Committee on 31 March
2014. You can find more details of the experience of Committee
members in their biographies on pages 34 and 35.
The Committee met four times in 2014 and the chart on page 54
shows how the Committee allocated its time. Committee meetings
were attended by management, including the Group Chief Executive,
Chief Internal Auditor, Chief Risk Officer, General Counsel, Group
Corporate Relations Director, and the Heads of Compliance, Conduct
Risk and Operational Risk, as well as representatives from the
businesses and other functions.
Member Meetings attended/eligible to attend
Sir David Walker (Chairman to 31 March 2014) 1/1
Reuben Jeffery III (Chairman from 1 April 2014) 4/4
Mike Ashley 4/4
Tim Breedon 4/4
Wendy Lucas-Bull 4/4
Dambisa Moyo* 3/4
Diane de Saint Victor* 3/4
Sir John Sunderland 4/4
* Unable to attend a meeting owing to prior business commitments
Committee role and responsibilities
The principal purpose of the Committee is to:
Q Ensure, on behalf of the Board, the efficiency of the processes for
identification and management of conduct, reputational and
operational risk; and
Q Oversee Barclays’ Citizenship Strategy, including the management of
Barclays’ economic, social and environmental contribution.
The Committee’s terms of reference are available at
barclays.com/corporategovernance
Governance: Directors’ report
What we did in 2014
Board Conduct, Operational and Reputational Risk Committee Reporta