Barclays 2015 Annual Report Download - page 29

home.barclays/annualreport Barclays PLC Annual Report 2015 I 27
 pages 119 to 126, which provide details of the material existing and
emerging risks that the Board believes could threaten the Group’s
business model, future performance, solvency or liquidity;
 pages 143 to 215, which provide a review of the performance of the
Group against each of the five principal risks;
 pages 127 to 142, which provide an overview of the Group’s approach
to risk management, its control and governance systems and how
such risks may be mitigated;
 pages 217 to 241, which review the performance of Barclays, including
key performance indicators and the contributions made by each of its
businesses to the overall performance of the Group;
 pages 243 to 347, which give a detailed analysis of the statutory
accounts and in-depth disclosure of the financial performance of
the Group.
In its review of the information outlined above, the Board has been
particularly focused on the implementation of structural reform, legacy
conduct matters and the impact of a Minimum Requirement for own
funds and Eligible Liabilities (MREL). The potential impacts of these risks
have been estimated and included within the Medium-Term Plans, and
working capital report. The review and analysis of this information
enables the Directors to confirm they have a reasonable expectation of
the Group’s viability over the next three years. This period covers the
period used for the Group’s medium-term capital plans and projections
and has been selected as it provides management and the Board
sufficient and realistic visibility of the future industry environment.
During this projected three year period, the Directors have a reasonable
expectation that Barclays will continue to operate and meet its liabilities
as they fall due.
In assessing the Group’s viability over the next three years, it is recognised
that all future assessments are subject to a level of uncertainty that
increases with time and that future outcomes cannot be guaranteed or
predicted with any certainty. The Board’s assessment of the Group’s
viability over the next three years is also subject to the risk factors
highlighted on pages 119 to 126 and in particular those items of focus
referenced above, all of which could have an impact on the future
performance of Barclays.
Read more in the Governance section at home.barclays/
corporategovernance
Board diversity
Your Board’s overriding duty is to ensure it is strong and effective, with
strong and effective Directors. All appointments to your Board are
therefore made on merit, taking into account the collective balance of
skills, experience and diversity that the Board requires. Our Board
Diversity Policy, which is available at home.barclays, sets out our policy
and objectives for achieving diversity on your Board. At the end of 2015,
there were four women on your Board (29%), compared to our target of
25% by the end of 2015.
Noting that the latest progress report on women on boards from the
Davies Review has suggested a target of at least 33% by 2020, your
Board has adopted this new target in its Board Diversity Policy.
Gender balance
31.12.15 4 Female Directors (29%)
10 Male Directors (71%)
31.12.14 3 Female Directors (21%)
11 Male Directors (79%)
31.12.13 3 Female Directors (20%)
12 Male Directors (80%)
31.12.12 1 Female Director (8%)
11 Male Directors (92%)
Viability statement
While the financial statements and accounts have been prepared on a
going concern basis, the UK Corporate Governance Code requires the
Directors to make a statement in the Annual Report with regard to the
viability of the Group, including explaining how they have assessed the
prospects of the Group, the period of time for which they have made the
assessment and why they consider that period to be appropriate.
In considering the viability of the Group, the Board has carried out a
regular and robust assessment of the Group’s risk profile across the five
principal risks and the material existing and emerging risks. The material
existing and emerging risks considered include those risks that senior
management believe could cause the Group’s future results of
operations, financial condition and prospects to differ materially from
current expectations, including the ability to meet dividend expectations,
ability to maintain appropriate levels of capital and meet capital and
leverage ratio targets, and achieve stated targets and commitments as
outlined in the Strategy section. The assessment also considered the
Group’s resilience to the threats to its viability posed by those risks in
certain stress scenarios.
In addition to the robust assessment described above, the Board
considered management’s working capital and viability report dated
15 February 2016. As part of this report, the Board considered a forecast
of Barclays’ Group CET1 ratio trajectory to December 2018, a forecast of
the leverage ratio trajectory, the Tier 1 and total capital ratio and the
build-up of loss absorbing capacity. The Board also considered the
liquidity and funding profile of the Group as expressed by Barclays’
internal liquidity risk appetite (LRA) and regulatory liquidity coverage and
stable funding ratios. In addition, the review included an up-to-date
assessment of financial risks, including market and credit risk, and a
review of operational and conduct risk. The latest internal stress test
conducted in February 2016 was also reviewed, including consideration
of the potential for management and strategic actions in the event
stresses were to materialise. The spot position and forecast trajectory of
solvency and liquidity ratios, as well as financial and non-financial risks,
were considered in line with risk appetite. The report also included
solvency and liquidity forecasts of key legal entities, on a post structural
reform basis. The Board and Board Risk Committee frequently review
and monitor solvency ratios and the risk profile.
Information relevant to the Board’s assessment of the Group’s viability
can be found in the following sections of the Annual Report:
Risk review Financial review Financial statements Shareholder information