JUST GROUP PLC Annual Report and Accounts 2021
GROUP RISK AND COMPLIANCE COMMITTEE REPORT
ROLES AND RESPONSIBILITIES The Committee’s purpose is to assist the Board in discharging its responsibility to maintain effective systems of risk management, compliance and internal control throughout the Group. The Committee plays a key role in providing effective oversight and challenge on the continued appropriateness and effectiveness of the risk management and internal control framework and risk strategy, and of the principal and emerging risks inherent in the business. This includes oversight of risks associated with climate change. The Committee is also responsible for the oversight of regulatory compliance matters. The Committee is responsible for considering the above matters from the perspectives of the Company and each of the Group’s life companies, Just Retirement Limited (“JRL”) and Partnership Life Assurance Company Limited (“PLACL”), as well as from the perspective of any other Group entity as appropriate. The Committee works closely with other committees, in particular the Group, JRL and PLACL Audit Committees, and the JRL and PLACL Investment Committees. The cross membership between Board committees promotes a good understanding of issues and efficient communication. The full responsibilities of the Committee are set out in the terms of reference, which are reviewed annually and can be found at www.justgroupplc.co.uk . COMMITTEE MEMBERSHIP AND MEETINGS The Committee currently comprises six independent Non-Executive Directors. I joined as a member on 1 March 2021 and succeeded as Committee Chair following Keith Nicholson’s retirement from office on 31 December 2021. Paul Bishop joined as a Committee member on 31 December 2021. Biographies of the Committee members can be found on pages 68 to 71. Six scheduled and two unscheduled meetings were convened during 2021. Four of the scheduled meetings focused on regular risk and compliance reports and two meetings were for in-depth reviews of specific risk and compliance matters as well as to review certain key risk documents. There were two unscheduled meetings to consider, challenge and recommend for Board approval, the major model change and matching adjustment applications to the Prudential Regulation Authority (“PRA”) during the year. Non-Executive Directors who are not members of the Committee were invited to attend and contributed, at the invitation of the Chair, to the challenge and debate. There were standing invitations for the Group Chief Executive Officer, Group Chief Financial Officer, Group Chief Risk Officer and Group Chief Actuary to attend the meetings during the year. Other Group executives and senior managers were invited to attend the meetings to report, where appropriate, on their areas of responsibility. The Committee Chair holds regular private meetings with the Group Chief Risk Officer to ensure that all significant areas of risk are considered and that risk management is embedded within the business. The effectiveness of the Committee was reviewed as part of the annual Board effectiveness review which took place in late 2021 and the Board was satisfied with the Committee’s performance. AREAS OF FOCUS The Committee follows an annual rolling forward agenda with standing items considered at each quarterly meeting including a report from the Group Chief Risk Officer. Key areas of focus during the year included the following matters.
I am pleased to present my first report on behalf of the Group Risk and Compliance Committee (the “Committee”). This report outlines the main activities and areas of focus of the Committee during the year.
Kalpana Shah Chair, Group Risk and Compliance Committee
COMMITTEE MEMBERSHIP Kalpana Shah Chair, Independent Non- Executive Director Paul Bishop Independent Non-Executive Director Ian Cormack Senior Independent Director John Hastings-Bass Chair of the Board Steve Melcher Independent Non-Executive Director Clare Spottiswoode Independent Non-Executive Director Committee meeting attendance can be found on page 77.
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