RISK MANAGEMENT AT A GLANCE
The effective management of risk is essential to delivery of the Group’s strategy and the generation of shareholder value.
RISK GOVERNANCE:
-
Responsibility for risk management is embedded within the Group’s business divisions
-
Challenge and oversight of the effectiveness of risk management is provided by Group functions and formal Group level risk committees
-
Independent assurance on the effectiveness of both business risk management, and the Group level oversight and challenge processes, is provided by Internal Audit
GROUP OVERSIGHT FUNCTIONS:
-
Group Chief Risk Officer
-
Group Actuarial
-
Group Regulatory Risk & Compliance
-
Group Legal & Governance
COMMITTEE OVERSIGHT:
-
Key indicators monitor actual risk exposures to target positions
-
Risk mitigation programmes are established where risk exposures are outside tolerance or more effective use of capital can be achieved
|
Oversight of Group’s exposures | ||
|---|---|---|
|
Type of risk |
Description |
Oversight |
|
Market Risk |
Exposure to loss as a direct or indirect result of fluctuations in the value of, or income from, specific assets |
Investment & Market Risk Committee |
|
Insurance Risk |
Exposure to loss arising from claims experience being different to that anticipated |
Group Insurance Risk Committee |
|
Counterparty Credit Risk |
Exposure to loss if another party fails to perform its financial obligations to the Group |
Counterparty Credit Committee |
|
Operational Risk |
Exposure to loss arising from inadequate or failed internal processes, people, systems, or from external events |
Executive Risk Committee |
|
Liquidity Risk |
The risk that the Group, though solvent, either does not have sufficient financial resources available to enable it to meet its obligations as they fall due, or can secure them only at excessive cost |
Group Capital Committee |
|
Group Risk |
The risk of loss that a firm may be exposed to as a consequence of being a member of a group of companies. Group risk comprises Capital Adequacy Risk and Contagion Risk |
Group Capital Committee (GCC) maintains oversight of Capital Adequacy Risk and Executive Risk Committee (ERC) maintains oversight of Contagion Risk |
