Meet our Risk committee
Assisting the Board in its oversight of risk within the Group.
The principal purpose of the committee is to assist the Board in its oversight of risk within the Group, with particular focus on the Group’s risk appetite, risk profile and the effectiveness of the Group’s Risk Management Framework. We review the risks inherent in both our investment portfolios and in the insurance products we offer our clients.
In addition to the risks inherent in investing and in providing assurance, we review the strength of our capital base and our liquidity position, the level of our operational risk, and the significant ongoing changes to the regulatory framework.
The committee ensures that due diligence appraisals are carried out on strategic or material transactions, and also works with the Remuneration Committee to ensure that risk management is properly considered in setting the Group’s Remuneration Policy.
The committee comprises independent non-executive directors.
Belén Romana García (appointed 26 June 2015)(chair)
Michael Mire (appointed 12 September 2013)
Patrick Flynn (appointed 16 July 2019)
Jim McConville (appointed 01 December 2020)
Mohit Joshi (appointed 01 December 2020)
The following officers normally attend, by invitation, all meetings of the committee:
- Group Chair
- Group CEO
- Group Chief Risk and Capital Officer
- Chief Financial Officer
- Chief Audit Officer.
Other members of senior management are also invited to attend as appropriate, to present reports.
Role and responsibilities
The Committee assists the Board in its oversight of risk by undertaking the following:
- Review the effectiveness of the Group’s risk management framework;
- review the Group’s risk strategy;
- review the Group’s risk appetite and risk profile in relation to capital, liquidity,
- operational risk and franchise value;
- review the methodology used in determining the Group’s capital requirements
- and stress testing;
- review the adequacy and effectiveness of the Group’s system of non-financial
- internal controls and risk management;
- ensure due diligence appraisals are carried out on strategic or significant
- oversee the Group’s cyber strategy;
- review the implementation of the Group data strategy;
- review and provide oversight of financial crime risk;
- monitor prudential regulatory requirements across the Group.
With the Board Customer, Conduct and Reputation Committee:
- consider the Group’s exposure in managing financial risks from Climate Change.
With the Board Remuneration Committee:
- ensure that risk management is properly considered in setting remuneration policy;
- in respect of the award of and vesting of any long-term incentives and deferred
- awards, the application of any performance or other adjustments, and clawback and/or malus (including cash awards); and
- promote a risk awareness culture for the Group.
A summary of the committee’s activities during 2020 is shown below, full details can be found in the committee’s report in the 2020 Annual Report and Accounts.
- Reviewed reports from the Group Chief Risk Officer (Group CRO), which included updates on significant risks facing the Group, the Group’s capital and liquidity position, the control environment, emerging risks and the Company’s risk profile, and operational, regulatory and conduct risks
- Received regular updates on the global COVID-19 pandemic and associated developing risks
- Reviewed and recommended for Board approval the Group’s risk policies
- Reviewed and recommended for Board approval the Group’s Solvency II (SII) capital and liquidity risk appetites
- Approved the Group’s SII capital risk tolerances by risk type
- Approved recommendations made by the Group CRO in his 90 day observations
- Approved mobilisation of the Risk Improvement Delivery Programme in 2021
- Undertook a review of the internal model components, reviewed internal model validation reports and governance updates, and approved changes to the internal model
- Reviewed the findings from France actuarial model review undertaken by Ernst & Young
- Approved the 2020 Group Capital and Liquidity Plan and subsequent updates
- Reviewed capital and liquidity projections including the Group’s SII shareholder cover ratio1 and liquidity cover ratio
- Reviewed updates on credit risk and the Company’s credit exposure and reviewed mitigating actions
- Reviewed the development of the Company’s strategy from a risk perspective
- Approved the Systemic Risk Plan, the Recovery Plan and the Liquidity Risk Management Plan
- Approved the scenarios for Group-wide stress testing to support the Group Recovery Plan
- Reviewed the risks to the 2021-2023 Group Plan
Assisting the Board in discharging its responsibilities for monitoring the integrity of the Group’s financial statements.
Customer, Conduct and Reputation committee
Assisting the Board in its oversight of culture, conduct and reputation issues.
Nomination and Governance committee
Ensuring the Board has strong and responsible leadership together with a wide range of skills.
Assisting the Board with remuneration.