Barclays 2009 Annual Report Download - page 91

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 89
The Chief Risk Officer manages the independent Group Risk function
and chairs the Group Risk Oversight Committee, which monitors the
Group’s risk profile relative to established risk appetite. Reporting to the Chief
Risk Officer, and working in the Group Risk function, are risk-type heads for:
retail credit risk, wholesale credit risk, market risk, operational risk, financial
crime risk and capital analytics. Along with their teams, the risk-type heads
are responsible for establishing a Group-wide framework for risk control
framework and oversight. These risk-type teams liaise with each business
as part of the monitoring and management processes.
In addition, each business unit has an embedded risk management
function, headed by a business risk director. Business risk directors and their
teams are responsible for assisting business heads in the identification and
management of their business risk profiles and for implementing
appropriate controls. These teams also assist Group Risk in the formulation
of Group policies and their implementation across the businesses. The
business risk directors report jointly to their respective business heads and
to the Chief Risk Officer.
The risk type heads within the central Group Risk function and the
business risk directors within the business units report to the Chief Risk
Officer and are members of the Group Risk Oversight Committee.
Governance structure by risk type
Board
Divisional Chief Executive Officers Group Finance Director
Group Chief Executive
Internal Audit
Business Heads Chief Risk Officer
Business Risk Directors Group Risk Heads
Retail
Credit Risk
Financial
Crime Risk
Market
Risk
Wholesale
Credit Risk
Capital
Demand
Operational
Risk
– Plan and control the taking of credit risk
based on clear and accurate assessments.
– Support business decision-making and
proactive identification of new risks.
– Ensure a robust framework for the creation,
use and monitoring of credit risk models.
– Ensure traded
market risk resides
primarily within
Barclays Capital,
and minimise
non-traded
market risk.
– Understand and
control market
risk by robust
measurement
and setting of
position limits.
– Facilitate business
growth within
controlled and
transparent risk
management
framework.
– Develop a clear
profile of financial
crime risk across
the Group.
– Share intelligence,
adopt common
standards and
respond promptly
to emerging issues.
– Drive forward law
enforcement and
other government
initiatives.
– Maintain and
develop the
Group’s economic
capital framework.
– Prepare Risk
Appetite for the
Board to approve
and track.
– Conduct stress
testing exercises.
– Co-ordinate Group
Risk input in the
Group’s medium-
term planning.
– Provide assurance
on each business’
capital demand.
– Capture, understand
and report the
operational risks
being taken by
the Group.
– On a cost-benefit
basis, minimise
the frequency
and impact of
operational risk
events.