Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 181 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) The Committee monitored the delivery of, Committee oversight Committee roles and and approved updates to, the Compliance of the Risk function function's Annual Plan for 2022 and responsibilities The Committee is responsible for ensuring approved the Annual Plan for 2023. During The Committee is responsible for the independence and effectiveness of the 2022, a benchmarking review of the design reviewing, on behalf of the Board, Risk function, whose primary role is the effectiveness of the Compliance function management’s recommendations on oversight and challenge of risk taking as was undertaken by an independent third the Principal Risks as set out in the the second line of defence. It party. The Committee received an update ERMF (with the exception of accomplishes this by establishing the risk on the findings of that review, and was Reputation risk, which is a matter policies, limits, rules and constraints under pleased to note the conclusion that the reserved to the Board), and in which activities of the first line of defence Compliance function was considered to particular: shall be performed, consistent with the have a well-structured design relative to Group’s risk appetite and through • reviewing, on behalf of the Board, firms of a similar size, complexity, business monitoring the adherence of the first line the management of those Principal model and geographical position. The of defence against these risk policies, limits Risks in the ERMF Committee will oversee management’s and constraints. • considering and recommending to plans to implement and embed the The Committee reviewed the Risk the Board the Group’s risk appetite enhancement opportunities identified by function’s own assessment of its risk and tolerances for those Principal that review. capability and effectiveness in late 2022 Risks Committee meetings which showed that the function continues • reviewing, on behalf of the Board, During 2022, the Committee met 12 times to meet expectations in providing effective the Group’s risk profile for those (including three ad hoc meetings) and the risk management and independent Principal Risks attendance by members at these oversight. The report identified areas for • commissioning, receiving and meetings is shown on page 178. As well as enhancement, including continuing to considering reports on key risk its members, Committee meetings were enhance its Operational risk and Model risk issues attended by representatives from capabilities, which the Committee will management, including the Group Chief • safeguarding the independence, monitor into 2023. The Committee will Executive, Group Chief Risk Officer, Group and overseeing the performance, oversee the work of the Risk function to Finance Director, Group Chief Internal of Barclays’ Risk and Compliance upgrade and enhance its infrastructure, Auditor, Group Treasurer, Group Chief functions. which will be pivotal to meeting regulatory Compliance Officer and Group General expectations for the Market risk The Committee’s terms of reference Counsel, as well as representatives from framework. are available at home.barclays/who- the businesses and additional members we-are/our-governance/board- During 2022, the Committee oversaw a from the Risk function. The Committee committees/. change to the senior management of the held a number of sessions with the Group Risk function with the appointment of a Chief Risk Officer and the Group Chief new Chief Risk Officer for BBPLC who took Compliance Officer, which were not up the role in early 2023. attended by other members of Committee oversight of the management. The lead audit engagement Compliance function partner of KPMG also attended Committee meetings. The Compliance function plays a key role in strengthening the culture of Barclays by providing oversight of the management of Conduct risk. Compliance oversees that Conduct risks are effectively identified, managed, monitored and escalated, and has a key role in helping Barclays achieve the right conduct outcomes and evolve a conduct-focused culture. The Committee maintains oversight of the Compliance function, and supports the independence of the function from the operational functions to ensure that Compliance has sufficient authority, stature, resources and access to the management body.