Peoples walking with umbrella

The Management Committee retains accountability for risk management.

It regularly considers the most significant risks facing the Group and uses quantitative exposure measures, such as stress tests, where appropriate. The non-executive oversight of the risk management process lies with each Co-Head off each Business Unit.

The Chief Executive and Group Management Committee review the key corporate risks facing the Group. Individual risks are managed in different ways depending on the nature of the risks and their potential impacts so as to mitigate adverse consequences. We group the risks we face into market, investment performance and liquidity risks; credit risks; operational risks; and emerging risks. We continually upgrade our risk control processes and technological support tools to increase their effectiveness.

The Chief Executive has delegated the executive oversight of risk to the Chief Financial Officer. The Chief Financial Officer has responsibility for the risk and control framework of the Group and the independent monitoring and reporting of risks and controls.

Meetings are attended by Group Management Committee members consistent with the quarterly cycle of reviewing individual businesses. As the principal management committee for the monitoring and reporting of risks and controls, the Group Risk Committee reviews and monitors the adequacy and effectiveness of the Group's risk management framework, including relevant policies and limits. It also reviews trends and exceptions in the most significant risk exposures.

A positive risk culture promoted from the top throughout its baseline sets a solid foundation to acknowledge and raise awareness about risk.