Barclays 2012 Annual Report Download - page 28

Risk
Getting risk management right is
essential for a universal bank and to
achieve this our exposures must be
well understood and managed.
“The credit and market risk portfolios
have continued to perform well during
the recent difficult market conditions.”
Robert Le Blanc
Chief Risk Officer
Barclays Risk objectives are aligned with the Group’s purpose to help
people achieve their ambitions in the right way and is underpinned
by the Group’s five core values: Respect; Integrity; Service;
Excellence; and Stewardship.
Barclays has clear risk management objectives and an established
strategy to deliver them through core risk management processes.
Of course, risks develop and evolve over time and their impact on
the Group will vary in response to internal and external events.
Independent risk teams are in place within each of our businesses to
support close working relationships with the business teams taking on
the risk. These risk teams ultimately report to a Chief Risk Officer within
each business who in turn reports to the Group Chief Risk Officer and
the business Chief Executive.
A separate Group risk team, including individually identified
Principal Risk Owners for each Principal Risk adds a further layer of
independence and looks across the Group to ensure that, for each
Principal Risk, an overall risk appetite has been clearly defined and
required standards and policies for risk management are being
consistently delivered. During 2012, there were four Principal Risks
(see the table below).
Risk type
Credit
risk
The suffering of financial loss should any of
our customers not fulfil their contractual
obligations to the Group.
Market
risk
The reduction to earnings or capital due to
volatility of trading book positions or an inability
to hedge the banking book balance sheet.
Funding
risk
The failure to maintain capital ratios to
support business activity and meet regulatory
requirements and the failure to meet liquidity
obligations leading to an inability to support
normal business activity and to meet liquidity
regulatory requirements.
Operational
risk
Losses or costs resulting from human factors,
inadequate or failed internal processes and
systems or external events.
barclays.com/annualreport26 I Barclays PLC Annual Report 2012