Risk management is at the heart of Helping Britain Recover and building the UK's preferred financial partner.
Our approach to risk
Our mission is to protect our customers, colleagues, the Group, investors and society, while enabling sustainable growth. This is achieved through informed risk decision-making and robust risk management, supported by a consistent risk-focused culture.
A prudent approach to risk is fundamental to our business model and drives our participation choices.
Risks are identified, managed, mitigated and monitored using our comprehensive enterprise risk management framework. This is the foundation for the delivery of effective risk control.
Enterprise risk management framework
The Group's risk appetite, principles, policies, procedures, controls and reporting are regularly reviewed and updated when needed to ensure they remain fully in line with regulation, law, corporate governance and industry good practice.
The Board is responsible for approving the Group's risk appetite statement annually. Board-level metrics are cascaded into more detailed business appetite metrics and limits. Regular close monitoring and comprehensive reporting to all levels of management and the Board ensures appetite limits are maintained and subject to stress analysis at a risk-type and portfolio level, as appropriate.
Our external environment
We operate in an increasingly dynamic market and have to respoind to an ever-changing external environment. We've built our business and our strategy to manage the fluctuations we see.