Barclays 2013 Annual Report Download - page 134

Risk review
Contents
The management of risk plays a central role in the execution of Barclays’ strategy.
For 2013, Barclays’ Risk Management disclosures are located across the Annual Report and Pillar 3 Report.
Annual Report Pillar 3 Report
Risk
review
Risk
management
Risk overview
These pages provide a comprehensive
overview of Barclays’ risk factors and
approach to risk management.
■ Risk factors 133-141
■ Barclays risk management strategy 378
■ Barclays risk culture 378-379
■ Risk governance and assigning responsibilities 379-384
■ Principal risks 384-385
■ Risk management in the setting of strategy 385-391
■ Modelling of credit risk 118-127
Credit risk
Credit risk is the risk of suffering fi nancial
loss should the Group’s customers, clients
or market counterparties fail to fulfi l their
contractual obligations.
■ Credit risk overview and risk factors 142 392
■ Analysis of maximum exposure and collateral
and other credit enhancement held 142-144 398-400
■ Concentrations of credit risk 145-148 393 36-47
■ Balance sheet credit quality 149-150 404 52-57
■ Analysis of loans and advances and impairment 151-157 393-398 58-63
■ Retail credit risk 158-172 392-402
■ Wholesale credit risk 173-180 392-402
■ Exit Quadrant assets 181
■ Exposures to Eurozone countries 182-189
■ Analysis of securitisations 84-97
■ Maturity of credit exposures 46-47
■ Capital requirements for credit risk 33-34
■ Counterparty credit risk exposure and RWAs 66-69
■ RWAs and credit risk exposure by business
and Basel asset class 36-41
Market risk
Market risk is the risk of the Group
suffering fi nancial loss due to the Group
being unable to hedge its balance sheet at
prevailing market levels.
■ Market risk overview and risk factors 190 405 74
■ Traded market risk 191-194 407-412 75-78
■ Non-traded market risk 195-196 413 80-81
■ Foreign exchange risk 197 82
■ Analysis of pension risk 197-198 414 82-83
■ Analysis of securitisations 84-97
■ Capital requirements for market risk 79
Funding risk – Capital
Capital risk is the risk that the Group is
unable to maintain appropriate capital ratios.
■ Funding risk – Capital overview and risk factors 199 420
■ Capital composition 200 18
■ Movement in total regulatory capital 201 19
■ Risk Weighted Assets by risk type and business 202 22
■ Movement in Risk Weighted Assets 202 23-24
■ CRD IV as implemented by the Prudential
Regulation Authority 203-204 25-30
■ Leverage ratio requirements 205-206 31
■ Economic capital 207
Funding risk – Liquidity
Liquidity risk is the risk that the Group is
unable to meet its obligations as they fall
due as a result of a sudden, and potentially
protracted, increase in net cash outfl ows.
■ Funding risk – Liquidity overview and risk factors 208
■ Liquidity stress testing 208-210 419
■ Liquidity pool 211-212
■ Funding structure 212-215
■ Encumbrance 215-218
■ Credit ratings 219
■ Liquidity management at Absa Group 220
■ Contractual maturity of fi nancial assets
and liabilities
220-224
Operational risk
Operational risk is the risk of direct or
indirect impacts resulting from human
factors, inadequate or failed internal
processes and systems or external events.
■ Operational risk overview and risk factors 225 415 100
■ Operational risk profi le 225 100
■ Supervision and regulation 230-235
■ Capital requirements for operational risk 99
Reputation risk
Reputation risk is the risk of damage to
Barclays’ brand arising from any association,
action, or inaction which is perceived by
stakeholders to be inappropriate or unethical.
■ Reputation risk 226-227
Conduct risk
Conduct risk is the risk that detriment
is caused to our customers, clients,
counterparties or Barclays and its employees
because of inappropriate judgement in the
execution of our business activities.
■ Conduct risk 228-229
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132 Barclays PLC Annual Report 2013