Barclays 2005 Annual Report Download - page 54

Barclays PLC
Annual Report 2005
52
Risk management
Risk management and control – overview
Risk Responsibilities
The principal responsibilities extend throughout the organisation.
•The Board requires that management maintains an appropriate system of internal control and reviews its effectiveness. The Board approves
risk appetite and monitors the Group’s risk profile against this appetite.
•Business leaders are responsible for the identification and management of risk in their businesses.
•The Risk Director, under delegated authority from the Group Chief Executive and Group Finance Director, has responsibility for ensuring
effective risk management and control.
•Risk-Type Heads and their teams in Central Support are responsible for establishing a risk control framework and risk oversight.
•Business risk teams, each under the management of a Business Risk Director, are responsible for assisting business leaders in the identification
and management of their business risk profiles and for implementing appropriate controls.
•Internal Audit is responsible for the independent review of risk management and the control environment.
The internal control framework at Barclays is aligned with the internationally accepted standard Internal Control – Integrated Framework
published by the Committee of Sponsoring Organisations of the Treadway Commission (COSO). The Group’s principal risk categories (set out
below) are the subject of Board approved risk control requirements.
Brand Management Liquidity
Capital Market
Change Operations
Corporate Responsibility People
Credit Regulatory Compliance
Financial Crime Strategic
Financial Reporting, Taxation and Budgeting Technology
Legal
Detailed discussion of our risk management of certain risks follows, starting with credit risk on page 57.
The management of risk at Barclays is guided and monitored by a number of committees. Each has specific functions as shown in the chart on the
Governance Structure at Group Level on the next page.
Internal Audit
Group Board
Group Chief Executive
Group Finance DirectorBusiness Heads
Risk Director
Business Risk Directors
Risk-Type Heads
Corporate/ All
Retail Wholesale Market Operational other
Credit risk Credit risk risk risk risks
UK Banking ✓✓✓✓✓
Barclaycard ✓✓✓✓✓
Barclays Capital ✗ ✓✓✓✓
Wealth Management ✓✓✓✓✓
International Retail and
Commercial Banking ✓✓✓✓✓
Barclays Global Investors ✗ ✓✓✓✓
Matrix of risk responsibilities at Barclays