Barclays 2013 Annual Report Download - page 385

Reporting and Control
Enterprise Wide Risk Management Committee
Financial
Risk
Committee
Treasury
Committee
Tax Risk
Committee
Operational
Risk & Control
Committee
Conduct &
Reputation Risk
Committee
Credit
Risk
Market
Risk
Conduct
Risk
Reputation
Risk
Operational
Risk
Funding
Risk
Chief Executive – Group Executive Committee
Report into Board Financial Risk Committee Report into Board Conduct, Reputation and
Operational Risk Committee and Board Audit Committee
■ considers the key Group-wide risk themes which may have a significant impact on the Group
■ considers the overall risk profile performance against risk appetite
■ considers the design and completeness of the Enterprise Wide Risk Management Framework
■ also reports into the Board Enterprise Wide Risk Committee
■ monitors and manages risk adjusted performance and businesses
■ monitors risk profile in
respect to risk appetite
■ debates and agrees actions
on the financial risk profile
and risk strategy across
the Group
■ considers issues escalated
by Risk Type Heads and
Business Risk Directors
■ sets policy/controls for
liquidity, maturity
transformation and
structural interest rate
exposure
■ monitors the Group’s
liquidity and interest
rate maturity mismatch
■ monitors usage of
regulatory and
economic capital
■ oversees the management
of the Group’s capital plan
■ monitors the tax risk
profile in respect of
risk appetite
■ assesses the quality of
the application of the
control framework
■ considers issues that
arise as a result of
developing trends
■ reviews, challenges and
recommends appetite
for Operational Risk
■ monitors risk profile
against risk appetite
for relevant Key Risk Types
■ reviews the Group’s
aggregate Operational
Risk profile
■ reviews and challenges
presentations on
individual Key Risk Types
■ assesses quality of the
application of the
Reputation and Conduct
Risk Control Frameworks
■ recommends risk appetite
and sets policies to ensure
consistent adherence to
that appetite
■ reviews known and
emerging reputational
and conduct related risks
to consider if action is
required
■ Proactively considers
reputational and conduct
related issues that arise as
a result of business activity
and from external forces
The launch of the Transform programme and subsequent introduction
of the ERMF has introduced a more integrated ‘One Risk’ approach to
how the Group manages risk, including governance, risk appetite,
processes, and the effectiveness of its controls, together with
leveraging colleague development opportunities.
During its day-to-day operations the Group faces a number of risks,
which may be: i) assessed and considered appropriate (e.g. granting a
loan to a customer); ii) as a result of unintended consequences of
internal actions (e.g. IT system failure); or (iii) as a result of events
outside the Group’s control but which impacts our business (e.g.
financial disruption in a region in which the Group operates).
The Group’s approach to risk taking is structured, systematic and
comprehensive, built into the decision making as objectives and
aligned to the Evaluate, Respond and Monitor (E-R-M) process as
defined in the section ‘Barclays Risk Management Strategy’.
The Enterprise Wide Risk Management Committee (EWRMC) was
created in 2013 and was established by, and derives its authority from,
the Group Chief Risk Officer (CRO). It supports the CRO in the provision
of oversight and challenge of the systems and controls in respect of
risk management, particularly:
 Review, challenge and recommend risk appetite;
 Monitor risk profile against risk appetite; and
 Review the design and completeness of the ERMF and Principal Risk
categories.
EWRMC membership includes the Group CRO, Group Chief Executive
Officer (CEO), Group Finance Director, Group General Counsel, and
Head of Compliance.
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