Barclays 2007 Annual Report Download - page 86

Risk management
Barclays approach to risk management
84 Barclays PLC Annual Report 2007
The Committees shown below receive regular and comprehensive reports.
The Board Risk Committee receives a quarterly report covering all of our
principal risks. The Board Audit Committee receives quarterly reports on
control issues of significance and half-yearly impairment allowances and
regulatory reports. Both Committees also receive reports dealing in more
depth with specific issues relevant at the time. The proceedings of both
Committees are reported to the full Board, which also receives a concise
quarterly risk report. Internal Audit supports both Committees by
attendance and/or the provision of quarterly reports resulting from
its work on governance, risk and control issues of significance.
The Board Audit Committee reviews and approves Internal Audit’s
plans and resources, and evaluates the effectiveness of Internal Audit.
An assessment by external advisers is also carried out periodically.
In addition to the Committees shown in the chart, there is a Brand and
Reputation Committee reviewing emerging issues with potentially
significant reputational impact.
Governance structure at Group level
Board oversight Board
Board Audit Committee
ASSURANCE
– Review the Group risk profile.
– Approves the Group Control Framework.
– Approves minimum control requirements
for principal risks.
– Approves overall Group risk appetite.
AUTHORITY
CONTROLS
APPETITE
Board Risk Committee
Assurance
Internal Audit
– Assesses the adequacy and effectiveness
of the Group Control Framework.
– Assesses management assurance processes.
REPORTING AND CONTROL
Risk adjusted
performance Group Chief Executive
Group Executive Committee
Governance and Control Committee Treasury Committee
– Reviews the adequacy and effectiveness
of the Group Control Framework.
– Monitors compliance with the
Framework including remediation
of significant control issues.
– Reviews reports on control issues of
Group-level significance.
– Sets policy/controls for liquidity,
maturity transformation and
structural interest rate exposure.
– Monitors the Group’s liquidity and
interest rate maturity mismatch.
– Monitors usage of regulatory and
economic capital.
– Oversees the management of
the Group’s capital plan.
– Ensures current risk profile is consistent
with Group risk appetite.
– Debates and agrees actions on the risk
profile and risk strategy across the Group.
– Considers issues escalated by Risk Type
Heads and Business Risk Directors.
– Monitors and manages risk adjusted
performance of businesses.
Risk Oversight Committee
– Considers the adequacy and effectiveness
of the Group Control Framework.
– Reviews reports on control issues of
Group-level significance.