HSBC 2012 Annual Report Download - page 121

119
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Detailed list of disclosures in this report arising from EDTF recommendations
Type of risk Recommendation Disclosure Page
General 1 The risks to which the business is exposed. 124 to 126
2 Our risk appetite and stress testing. 126 to 128
3 Top and emerging risks, and the changes during the reporting period. 130 to 136
4 Discussion of future regulatory developments affecting our business
model and Group profitability, and its implementation in Europe. 132 and 288 to 292
5 Group Risk Committee, and their activities. 323 to 328
6 Risk culture and risk governance and ownership. 124
Risk governance, risk
management and
business model
7 Diagram of the risk exposure by global business segment. 20
8 Stress testing and the underlying assumptions. 127 to 128
Capital adequacy and
risk-weighted assets
9 Pillar 1 capital requirements, and the impact for global systemically
important banks.
For calculation of Pillar 1 capital requirements,
see pages 10 to 14 of Pillar 3 Disclosures 2012.
294 to 296 and 291 to
292
10 Reconciliation of the accounting balance sheet to the regulatory
balance sheet.
287
11 Flow statement of the movements in regulatory capital since the
previous reporting period, including changes in core tier 1, tier 1 and
tier 2 capital.
285
12 Discussion of targeted level of capital, and the plans on how to
establish this.
288
13 Analysis of risk-weighted assets by risk type, global business and
geographical region, and market risk RWAs.
282 to 283
14 For analysis of the capital requirements for each Basel asset class,
see pages 10 to 14, 23, 58 and 61 of Pillar 3 Disclosures 2012.
15 For analysis of credit risk for each Basel asset class,
see pages 23 to 28 and 32 to 38 of Pillar 3 Disclosures 2012.
16 Flow statements reconciling the movements in risk-weighted assets
for each risk-weighted asset type.
283 and 284
17 For discussion of Basel credit risk model performance,
see pages 39 to 41 of the Pillar 3 Disclosures 2012 document.
Liquidity 18 Analysis of the Group’s liquid asset buffer. 206 to 207
Funding 19 Encumbered and unencumbered assets analysed by balance sheet
category.
211 to 214
20 Consolidated total assets, liabilities and off-balance sheet
commitments analysed by remaining contractual maturity at the
balance sheet date.
485 to 492
21 Analysis of the Group’s sources of funding and a description of our
funding strategy.
209 to 211
Market risk 22 Relationship between the market risk measures for trading and non-
trading portfolios and the balance sheet, by business segment.
218 to 219
23 Discussion of significant trading and non-trading market risk factors. 220 to 223
24 VAR assumptions, limitations and validation. 266 to 267
25 Discussion of stress tests, reverse stress tests and stressed VAR. 267
Credit risk 26 Analysis of the aggregate credit risk exposures, including details of
both personal and wholesale lending.
139 to 141
27 Discussion of the policies for identifying impaired loans, defining
impairments and renegotiated loans, and explaining loan forbearance
policies.
162 and 254 to 259
28 Reconciliations of the opening and closing balances of impaired loans
and impairment allowances during the year.
163 and 172
29 Analysis of counterparty credit risk that arises from derivative
transactions.
145
30 Discussion of credit risk mitigation, including collateral held for all
sources of credit risk.
163 to 168
Other risks 31 Quantified measures of the management of operational risk. 227 to 230
32 Discussion of publicly known risk events. 130 to 136
The 32 recommendations listed above are made in the report ‘Enhancing the Risk Disclosures of Banks’ issued by the Enhanced Disclosure
Task Force of the Financial Stability Board on 29 October 2012.