STRATEGIC REPORT
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NON-FINANCIAL RISK MANAGEMENT The risk management report on page 32 sets out our approach to risk management. Our approach enables all colleagues to take more effective business decisions through a better understanding of risk. The report sets out our principal risks and uncertainties including non-financial risks and how we mitigate those risks. The Group Risk and Compliance Committee (“GRCC”) has considered various non-financial risks during the year. These include risks arising from people, operational processes and IT systems, conduct risk and the current and future business and operational impacts of COVID-19 on the Group. The GRCC also received regular reports on the status of the Group’s climate change project, which covers various workstreams including risk management and financial risks. The aim is to prevent non-financial risks frommaterialising and having a detrimental impact on our business (including our reputation), our colleagues, our customers, our suppliers and other stakeholders. Our Risk team sets and manages the Group’s Policy Framework. Each Group policy has a policy owner and an executive sponsor. The policies are reviewed by the policy owner and executive sponsor at least annually and an attestation is provided. Changes to policies are reviewed by the GRCC and approved by the Board. Breaches of policies are monitored and reported, and recorded in our risk management system. These are escalated to the Group Chief Risk Officer. Serious breaches are reported to the GRCC or Board. This ongoing management of risks enables the business to take necessary action to remove or mitigate the risk where breaches have occurred. This could be through training or improving a process or policy. In serious or repeated cases, disciplinary action may be taken. APPROVAL The Strategic Report was approved by the Board of Directors on 15 March 2021 and signed on its behalf by:
JOHN HASTINGS-BASS Chair
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