1 Our risk culture.

We consider effective risk management to be integral to our business operations.

We encourage managers to have a positive attitude to risk and to understand the risks that are inherent in our business so that they can ensure we:

  • take advantage of business opportunities;
  • meet our business objectives;
  • control our areas of greatest risk;
  • act promptly to fix any weakness and failure in our processes; and
  • are confident that we hold the right capital for the risks to which we are exposed.

As well as having the right tools and processes, effective risk taking requires the right culture and behaviours across our businesses and we seek to promote an environment where:

  • there is openness and transparency in how we make decisions and manage risks;
  • significant business decisions are aligned with our strategy, our capital performance target and our expected returns, and consider the effect on our reputation and customers;
  • managers make decisions in the light of the impact on the entire Group; and
  • business managers own the risks and risk management processes associated with the activities for which they are responsible.

We know that no system of control is fail-safe and we encourage managers to report weaknesses and deficiencies as soon as they are identified.