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|Risk management and control - overview|
Risk governanceBarclays manages a variety of risks in the ordinary course of business. These risks are identified, measured and monitored through various control mechanisms across the Group, in a manner consistent with the requirements of the 'Internal control: Guidance for Directors on the Combined Code' issued by the Institute of Chartered Accountants in England and Wales.
Barclays approach to risk management, governance and control continues to evolve to reflect current best practice, risk management research and recognition of new risks. However, risk management and internal control processes can only manage and not eliminate all risks. The objective is to provide reasonable, but not absolute, assurance against material misstatement or loss.
Barclays believes that the Group's governance framework has continued to be enhanced during 2001. The current governance framework within the Group is being developed based on the following four principles:
Responsibilities for risk management and controlThe responsibilities for risk management and control in the current governance framework rests with the:
These responsibilities are managed through:
Against a background of a rapidly changing business environment, Barclays believes that its risk organisation needs to be capable of adapting quickly to new product and business structures. During 2001, Barclays continued to develop its integrated risk organisation, both to remain flexible in the face of changing business needs and to support the Value Based Management principles of the Group.
A key feature of the integrated risk management organisation is that it brings together both business risk functions and specialist risk teams.
Risk management in the businesses is the responsibility of the Business Risk Directors (BRDs), who have a functional reporting line to the Group Risk Director. The key role of Business Risk Directors is to assist the businesses to maximise value by:
Specialist risk teams report to the Group Risk Director.
Their role is to :
The following risks are managed in the risk management organisation:
These risks are analysed further in subsequent sections of the Financial Review.
Committees involved in risk management and control