Barclays 2007 Annual Report Download - page 85

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Business review
Barclays PLC Annual Report 2007 83
Group Board
Group Finance Director
Group Chief Executive
Business Risk Directors or
Chief Credit Officers
Business Heads
Divisional Chief Executive Officers
Internal Audit
Risk Director
Risk-Type Heads
Corporate/ All
Retail Wholesale Market Operational other
Credit risk Credit risk risk risk risks
UK Banking ✓ ✓ ✓ ✓ ✓
Barclays Capital ✓ ✓ ✓ ✓ ✓
Barclaycard ✓ ✓ ✓ ✓ ✓
International Retail and
Commercial Bank ✓ ✓ ✓ ✓ ✓
Barclays Wealth ✓ ✓ ✓ ✓ ✓
Barclays Global Investors x ✓ ✓ ✓ ✓
Business Risk Directors
Risk-Type Heads exist at Group-level for the main risk types, and report
to the Risk Director. Along with their teams, they are responsible for
establishing a risk control framework and risk oversight.
Each business has an embedded risk management team reporting to
a Business Risk Director or Chief Credit Officer who reports to the Risk
Director. The risk management teams assist Group Risk in the formulation
of Group Risk policy and its implementation across the businesses.
Business risk teams, each under the management of a Business Risk
Director, are responsible for assisting Business Heads in the identification
and management of their business risk profiles and for implementing
appropriate controls. The functional coverage of risk responsibilities is
illustrated in the diagram below.
Internal Audit is responsible for the independent review of risk
management and the control environment.
To support expanded risk taking, Barclays has continued to strengthen the
independent and specialised risk teams in each of its businesses, supported
by matching teams at Group level, acting in both a consultancy and
oversight capacity. As a prerequisite to business growth plans, it has made
the recruitment, development and retention of risk professionals a priority.
Organisation and structure
Responsibility for risk management resides at all levels within the
Group, from the Executive down through the organisation to each
business manager and risk specialist. Barclays distributes these
responsibilities so that risk/return decisions are taken at the most
appropriate level; as close as possible to the business, and subject to
robust and effective review and challenge.
Every business manager is accountable for managing risk in his or her
business area; they must understand and control the key risks inherent in
the business undertaken. Each business area also employs risk specialists
to provide an independent control function and to support the development
of a strong risk management environment. This functional approach to risk
management is built on formal control processes that rely on individual
responsibility and independent oversight, as well as challenge through
peer reviews.
The Board approves Risk Appetite and the Board Risk Committee monitors
the Group’s risk profile against this agreed appetite.
Business Heads 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.