Barclays 2013 Annual Report Download - page 394

Credit risk is the risk of suffering financial loss
should any of the Group’s customers, clients or
market counterparties fail to fulfil their contractual
obligations to the Group. The granting of credit is
one of the Group’s major sources of income and,
as the most significant risk, the Group dedicates
considerable resources to its control.
These disclosures are unaudited unless otherwise stated
Barclays Risk Management Strategy
Barclays has clear risk management objectives and a well-established
strategy to deliver them, through core risk management processes.
Overview (audited)
The credit risk that the Group faces arises mainly from wholesale
and retail loans and advances together with the counterparty credit
risk arising from derivative contracts entered into with clients. This is
demonstrated by the impairment charge analysis chart. Other
sources of credit risk arise from trading activities, including debt
securities, settlement balances with market counterparties, available
for sale assets and reverse repurchase loans.
Credit risk management objectives are to:
 Maintain a framework of controls to ensure credit risk-taking is
based on sound credit risk management principles;
 Identify, assess and measure credit risk clearly and accurately across
the Group and within each separate business, from the level of
individual facilities up to the total portfolio;
 Control and plan credit risk-taking in line with external stakeholder
expectations and avoiding undesirable concentrations;
 Monitor credit risk and adherence to agreed controls; and
 Ensure that risk-reward objectives are met.
1 Wholesale Loans and Advances £892m*
2 AFS and Reserve Repos £9m
3 Contingent Liabilities and Guarantees £17m
4 Retail Loans and Advances £2,153m*
*Excludes charges against contingent liabilities and guarantees
Total credit impairment charge and other provisions (£3,071m)
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Organisation and structure
Wholesale Credit Risk Management Committee
■ Chaired by Wholesale Credit Risk Director
■ Set wholesale risk profile
■ Monitor the wholesale credit risk profile against plan and agree any required actions
■ Review and challenge the profile of wholesale credit risk
■ Debate potential developing wholesale credit risk issues
Retail Credit Committee
■ Chaired by Retail Credit Risk Director
■ Monitor the retail credit risk profile against plan and agree any required actions
■ Review impairment performance and coverage ratios
■ Review key drivers of capital demand and changes in RWA
■ Review key retail risk issues
■ Review model methodologies and coverage
■ Review retail credit risk policies and framework
■ Investment Bank
■ Corporate Banking
■ Africa RBB
■ Wealth and Investment Management
■ UK RBB
■ Europe RBB
■ Africa RBB
■ Barclaycard
■ Corporate Banking (retail portfolios)
■ Wealth and Investment Management
Financial Risk Committee
Risk management
Credit risk management
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392 Barclays PLC Annual Report 2013