Barclays 2010 Annual Report Download - page 70

Risk management
Barclays risk management strategy continued
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 demand. 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.
For further details on the management of each of the principal risks see
pages 74 to 81.
Governance structure by key risk type
Board
Divisional Chief Executive OfficersGroup Finance Director
Chief Executive
Internal Audit
Business Heads
Chief Risk Officera
Group Treasurer
Business Risk Directors Group Risk Heads
Wholesale and
Retail Credit Risk
Financial Crime
Risk
Market
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
.
– Manage the Group's
capital plan.
– Manage the
Group's liquidity
risk management
framework.
– Stress reporting
for a number of
liquidity scenarios.
Capital and
Liquidity Risk
– 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.
Note
a Reporting lines effective from January 2011, previously reported to the
Group Finance Director.
68 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10