Barclays 2015 Annual Report Download - page 58

56 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Governance: Directors’ report
What we did in 2015
Board Risk Committee report
Area of focus Matter addressed Role of the Committee Conclusion/action taken
Risk governance, i.e.
the capability,
governance and
controls that the
Group has over the
management of risk.
The development of a scorecard to
assist the Committee in assessing risk
capability across the Group; further
enhancement to the limit framework
and governance of leveraged finance;
the actions being taken to enhance
controls and governance around risk
models.
 Requested development of a risk
capability scorecard.
 Regularly debated conditions in the
leveraged finance market, tracking
market indicators and the Group’s
risk exposures and assessing the
limit framework for leveraged
finance and underwriting, including
proposed changes to the framework
to strengthen controls.
 Assessed the progress of
enhancements to risk models
controls and governance, including
the role of the Group’s Independent
Validation Unit.
 Evaluated revisions proposed to the
ERMF.
The Committee approved the approach
to the risk capability scorecard and
requested a formal annual assessment of
capability, with the option of an external
assessment every three years. The
Committee approved a revised limit
framework for leveraged finance
transactions and approved underwriting
limits in general. The Committee
concluded that good progress had been
made on enhancing the controls and
governance around risk models and
asked management to focus on
improving the quality of models and data
quality further. The Committee also
recommended the revised ERMF to the
Board for approval.
Remuneration The scope of any risk adjustments to
be taken into account by the Board
Remuneration Committee when
making remuneration decisions for
2 0 15.
 Evaluated the Risk function’s view of
performance, which informed
remuneration decisions for 2015.
The Committee supported the Risk
function’s view of 2015 risk performance
and endorsed the report that had been
submitted to the Board Remuneration
Committee.
The Remuneration Report on pages 83
to 116 includes more detail on how risk is
taken into account in remuneration
decisions.
In addition, the Committee also covered the following matters in 2015:
 regularly tracked the utilisation of risk appetite and evaluated the
Group’s risk profile
 evaluated the impact of the Swiss franc revaluation on the Group’s
electronic trading systems and asked for any lessons learned to be
applied to other electronic platforms
 debated risk related matters arising from regulatory assessments and
the actions needed to address any specific issues raised
 approved regulatory submissions, including the Individual Capital
Adequacy Assessment Process and the Individual Liquidity Adequacy
Assessment
 assessed and debated a report on its own performance during 2014,
including considering whether its remit should be revised to cover
operational risk and assessing the degree of challenge and support
and value it provided to the Risk function
 discussed and agreed on its own training needs, resulting in two
workshops being held in 2015, one on risk appetite and one on
structural reform, with a further briefing session on the impact of
IFRS 9 planned for 2016
 approved amendments to its terms of reference to reflect its revised
remit and to ensure they remained in line with best practice and
 discussed and agreed its specific responsibilities for the oversight of
operational risk, focusing on the capital and financial impacts, leaving
the Board Audit Committee to oversee operational risk control issues.
Board Risk Committee allocation of time (%)
2015 2014
1
2
3
4
1Risk profile/risk appetite
(including capital and liquidity management)
43 57
2Key risk issues 31 19
3Internal control/risk policies 11 11
4Other (including remuneration and
governance issues)
15 13
Read more about Barclays’ risk management on pages 127 to 142
and in our Pillar 3 Report, which is available online at
home.barclays/annualreport