Barclays 2013 Annual Report Download - page 72

Corporate governance report
Board Financial Risk Committee
Board Financial Risk Committee Report
‘Changes to regulatory requirements
for capital and liquidity, in order to ensure
the safety and soundness of fi nancial
institutions and their ability to withstand
systemic shocks, continue apace.’
Tim Breedon
Chairman, Board Financial Risk Committee
Dear Shareholders
I succeeded David Booth as Chairman of the Committee on 1 January
2014, having been a member of the Committee since late 2012.
I would like to thank David on behalf of the Committee for his
signifi cant contribution, both as a member of the Committee and
latterly as Chairman.
The report that follows describes how the Committee discharged its
responsibilities during 2013 and provides an insight into the material
issues it considered. 2013 saw the Committee refocus on fi nancial risk
– credit, market and funding risk – as scrutiny of operational risk moved
within the remit of the Board Conduct, Reputation and Operational Risk
Committee. This has enabled the Committee to dig deeper into some
of the key fi nancial risk issues facing Barclays, for example,
redenomination risk, tax risk and pension risk, and to provide additional
scrutiny around risk governance and limit frameworks. You can read
more about the Committee’s role in the management of
redenomination risk below, in the ‘Governance in Action’ section. The
Committee also continued to play a part in examining Barclays’
fi nancial risk profi le and in determining the scenarios to be used in
Barclays’ stress testing exercises and evaluating the outcomes and the
potential impact.
Changes to regulatory requirements for capital and liquidity, in order to
ensure the safety and soundness of fi nancial institutions and their
ability to withstand systemic shocks, continue apace. 2014 will see
implementation of CRD IV, the text of which was fi nalised in 2013,
although the precise details of its implementation in the UK are still to
be agreed. We also expect to see a continuation of weak economic
conditions in some of our main markets and our focus will be on
ensuring that we continue to identify potential fi nancial risks and
have in place a range of appropriate mitigating actions.
Tim Breedon
Chairman, Board Financial Risk Committee
3 March 2014
Committee composition
Membership of the Committee and attendance at meetings in 2013 is
set out below:
Member
Meetings attended/eligible
to attend
David Booth (Chairman) (to 31 December 2013) ● ● ● ● ● ●
Mike Ashley (from 18 September 2013) ● ● ●
Tim Breedon (Chairman from 1 January 2014) ● ● ● ● ● ●
Reuben Jeffery ● ● ● ● ● ●
Sir Andrew Likierman (to 25 April 2013) ● ●
Dambisa Moyo* ● ● ● ● ●
●
Sir Michael Rake ● ● ● ● ● ●
● Attended
●
Did not attend
* unable to attend 1 meeting owing to a prior business commitment
Board Financial Risk Committee Allocation of Time (%)
1
2
3
5
2013 201
2
1 Risk Profile/Risk Appetite (including
capital and liquidity management) 48 61
2 Key Risk Issues 22 1
8
3 Internal Control/Risk Policies 12
6
4 Regulatory Frameworks 4 5
5 Other (including remuneration and
governance issues) 15 1
0
4
The Committee’s terms of reference are available at
Barclays.com/corporategovernance
barclays.com/annualreport
70 Barclays PLC Annual Report 2013