Risk committee
The committee is required to meet not less than four times each year.
Membership
- Michael Hawker (chairman) (appointed 1 January 2010)*
- Glyn Barker (appointed 27 February 2012)
- Mary Francis (appointed 14 January 2006)**
- Russell Walls (appointed 14 January 2006)
* Chairman from 1 September 2011
** Chairman from 1 January 2007 to 31 August 2011
Attendance in 2011
| Member | Meetings eligible to attend | Meetings attended |
| Michael Hawker* (chairman) | 11 | 10 |
|---|---|---|
| Mary Francis** | 11 | 10 |
| Leslie Van de Walle*** | 11 | 11 |
| Russell Walls | 11 | 11 |
* Michael Hawker was unable to attend the meeting held on 23 March 2011 due to prior commitments.
** Mary Francis was unable to attend the meeting held on 12 October 2011 due to prior commitments and this meeting being called at short notice.
*** Stepped down from the board and as a member of the risk committee with effect from 2 May 2012.
The following officers normally attend, by invitation, all meetings of the committee:
- Group chief executive
- Chief financial officer
- Chief audit officer
- Chief risk officer
- Representatives of external auditor
Other members of senior management are also invited to attend as appropriate, to present reports.
Main duties
- Review the Group's risk appetite and future risk strategy and make recommendations on risk appetite to the Board.
- Review the Group's risk profile against its risk appetite and strategy and review the drivers of change, if any, in the Group's risk profile.
- Review the design, completeness and effectiveness of the risk management framework relative to the Group's activities.
- Assess the adequacy and quality of the risk management function and the effectiveness of risk reporting within the Group.
- Work with the remuneration committee to ensure that risk is considered in setting the overall remuneration for the Group.
Read the full terms of reference for the committee.
Activities during 2011
- Strengthening risk management across the Group: considered in detail and approved an enhanced comprehensive Risk Plan, to provide a step change in the pace of implementation of the Group's risk management framework.
- Solvency II: Continued to oversee all aspects of the programme to implement the Solvency II Directive and the detailed contingency planning in relation to the Group's internal model.
- Risk monitoring: Received regular reports on key risk exposures, the drivers of risk in the Group, emerging and potential risks, including the risk of a sustained low interest rate environment. The Committee also monitored the adequacy of the Group control framework.
- Capital and liquidity management: Closely monitored the Group's economic capital and liquidity and considered in detail the management action taken to address the impact of the economic environment.
- Group risk management policies: Approved the new suite of policies and underlying standards which underpin the revised risk management framework.
- Fraud and financial crime: Maintained regular oversight of compliance with controls against financial malpractice and the arrangements for whistle blowing.
- Internal controls: Group Internal Audit provided the committee with independent and objective reports on the appropriateness, effectiveness, and sustainability of the Company's system of internal controls.
