Barclays 2013 Annual Report Download - page 231

In 2013 businesses across Barclays began conduct risk assessments to
evaluate how their business models and strategy might impact
customers and markets and generate poor outcomes and the action
that should be taken to address this risk. See the Business review
section on pages 18 to 45 for more information on how individual
businesses have taken the conduct agenda forward.
Barclays has also established a new conduct risk governance structure.
This will provide the Board with relevant information about how
conduct risks are being identified and managed, including whether
controls are designed and operating effectively. For more information
on the management of conduct risk see the Governance in Action
example relating to conduct risk in the Governance Report on page 74.
Governance framework for conduct risk
Board Level Corporate Governance
Executive Level Corporate Governance
Corporate Governance
Board Conduct Reputation and Operational Risk Committee
(BCRORC)
Conduct Risk Committee
(CRC)
Conduct and Reputation Risk Committee
(CRRC)
The CRC oversees Barclays’ commitment to managing conduct risks
and working towards delivering positive outcomes. Its responsibilities
include investigation, consideration of areas of potential conduct risk,
review of Barclays-wide Conduct Key Risk Profiles and review and
challenge of conduct risk policies and standards.
The CRRC reviews and monitors the effectiveness of Barclays’
management of Conduct and Reputational risk. Its responsibilities
include review, challenge and recommendation of the Conduct and
Reputational risk tolerance and appetite to the BCRORC, annual review
of the frameworks and associated policies, review of performance
against Conduct risk appetite and escalation of conduct risks, at its
discretion, to the BCRORC.
The BCRORC is a committee of the Board of Directors of Barclays PLC
and has the authority to investigate matters of conduct, reputational
and operational risk Barclays-wide. Its responsibilities include review
and approval of the Conduct risk appetite, governance and oversight of
the management of Conduct risk, ensuring that the potential conduct
and reputation impact of significant business decisions has been fully
considered.
During 2014 the conduct risk programme will continue to develop the
conduct risk framework, including the development of risk indicators
and reporting and will support Barclays to make the important changes
to the way it operates, such as through provision of training and
guidance.
Barclays’ approach to managing conduct risk has been developed in
line with the regulatory expectations of the Financial Conduct
Authority (FCA) and is subject to assessment by the FCA through its
Firm Systematic Framework. Periodic discussions have been held with
the FCA throughout the year.
Barclays approach to promoting good customer outcomes and market
integrity is consistent with the ‘Barclays Way’ – the new employee code
of conduct adopted in 2013.
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