Barclays 2013 Annual Report Download - page 384

Risk management
Barclays risk management strategy continued
There are four key Board level committees which review and monitor
risk across the Group. These are: the Board, the Board Enterprise Wide
Risk Committee, the Board Financial Risk Committee and the Board
Conduct, Reputation and Operational Risk Committee.
The Board
The Board (Board of Directors of Barclays PLC) is responsible for
approving risk appetite (see the Barclays risk management strategy
section on page 378), which is the level of risk the Group chooses to
take in pursuit of its business objectives. The Chief Risk Officer regularly
presents a report to the Board summarising developments in the risk
environment and performance trends in the key portfolios. The Board
oversees the management of the most significant risks through the
regular review of risk exposures and related key controls. Executive
management responsibilities relating to this are set via the Group’s
ERMF.
The Board Enterprise Wide Risk Committee (BEWRC)
The BEWRC was introduced in 2013 and is a committee of the Board,
from which it derives its authority and to which it regularly reports. The
principal purpose of the Committee is to review, on behalf of the Board,
management’s recommendations on risk, in particular:
 Consider and recommend to the Board the Group’s overall risk
appetite;
 Review, on behalf of the Board, the Group’s overall Risk Profile; and
 Satisfy itself on the design and completeness of the Group’s internal
control and assurance framework relative to the risk profile, including
the Principal Risk categories.
BEWRC membership comprises the Group Chairman and Chairmen of
the Board Audit Committee, Board Conduct, Reputation and
Operational Risk Committee, Board Financial Risk Committee and
Board Remuneration Committee. The Group CEO, Group CRO, Group
Finance Director, Head of Compliance, General Counsel and Chief
Internal Auditor are mandatory attendees.
The Board Financial Risk Committee (BFRC)
BFRC monitors the Group’s risk profile against the agreed appetite.
Where actual performance differs from expectations, the actions being
taken by management are reviewed to ensure that the BFRC is
comfortable with them. After each meeting, the Chair of the BFRC
prepares a report for the next meeting of the Board. Barclays first
established a separate BFRC in 1999 and all members are non-
executive directors. The Finance Director and the Chief Risk Officer
attend each meeting as a matter of course.
The BFRC receives regular and comprehensive reports on risk
methodologies and the Group’s risk profile including the key issues
affecting each business portfolio and forward risk trends. The
Committee also commissions in-depth analyses of significant risk
topics, which are presented by the Chief Risk Officer or senior risk
managers in the businesses. The Chair of the Committee prepares a
statement each year on its activities (see the BFRC Chairman’s report
on page 70).
The Board Conduct, Reputation and Operational Risk Committee
(BCROR)
The BCROR was created in 2013 in order to strengthen the Board level
governance over conduct risk and reputation matters. It reviews the
effectiveness of the processes by which Barclays identifies and
manages conduct and reputational risk and considers whether
business decisions will compromise Barclays ethical policies or core
business beliefs and values. It also considers the Group’s risk appetite
statement for operational risk and evaluates the Group’s operational
risk profile and operational risk monitoring.
In addition, the Board Audit and Board Remuneration Committees
receive regular reports on risk to assist them in the undertaking of their
duties. See the BCROR Chairman’s Report on page 73 for additional
details of its membership and activities of the BCROR.
The Board Audit Committee (BAC)
The BAC receives quarterly reports on control issues of significance and
a half-yearly review of the adequacy of impairment allowances, which
it reviews relative to the risk inherent in the portfolios, the business
environment, the Group’s policies and methodologies and the
performance trends of peer banks. The Chair of the BAC also sits on the
BFRC. See the BAC Chairman’s Report on page 62 for additional details
on the membership and activities of the BAC.
The Board Remuneration Committee (BRC)
The BRC receives a detailed report on risk management performance
from the BFRC which is considered in the setting of performance
objectives in the context of incentive packages. See the Remuneration
Report on page 89 for additional details on membership and activities
of the Board Remuneration Committee.
Summaries of the relevant business, professional and risk management
experience of the Directors of the Board are given in the Board of
Directors section on pages 83 to 85. The terms of reference for each of
the principal Board Committees are available from the Corporate
Governance section at: http://group.barclays.com/About-us/
Management-structure/Corporate-governance.
barclays.com/annualreport
382 Barclays PLC Annual Report 2013