Barclays 2003 Annual Report Download - page 73

Barclays PLC Annual Report 2003 71
Legal risk management
Effective management of legal risk is a key business line management
accountability. It is the primary responsibility of business management
to conduct business in accordance with applicable laws and with an
awareness of legal risk. Legal risk may arise in a number of ways,
primarily:
• Barclays businesses may not be conducted in accordance with
applicable laws;
• contractual arrangements may either not be enforceable as intended
or may be enforced against Barclays in an adverse way;
• the intellectual property of Barclays (such as its trade names) may not
be adequately protected; and
• Barclays may be liable for damages to third parties harmed by the
conduct of its business.
The Group identifies and manages legal risk through the effective use
of its internal and external legal advisers. The Group General Counsel is
responsible for formulating and communicating a risk control framework
for the management of legal risk and for monitoring a reporting
framework to assist business management in discharging its
responsibility.
Tax risk management
This is the risk of loss or increased charges associated with changes in,
or errors in the interpretation of, taxation rates or law. Responsibility for
control of this lies with the Group Taxation Director, reporting to the
Group Finance Director, and systems are in place to identify and manage
this risk.
This includes taking external advice as necessary. The businesses are
advised of their obligations to comply with tax and reporting
requirements. Whilst managed centrally, taxation staff are located within
the business areas, in the UK and overseas, where this adds to the
effectiveness of risk management.