Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 178 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report Prudent oversight of the risks facing the Group Dynamic Risk management in the face of challenging geopolitical and macroeconomic conditions. Dear Fellow Shareholders Since I joined the Board and took on the Board Risk Committee role of Risk Committee Chair in early 2022, Robert Berry Committee membership there have continued to be many a Chair, Board Risk Committee and meeting attendance in 2022 opportunities and challenges that have Meetings attended/eligible to attend required careful and considered risk Member (including ad hoc meetings) management. As the threat of COVID-19 1 Robert Berry 11/11 in our key operating regions receded in Mike Ashley 12/12 2022, geopolitical risks have heightened 2 Tim Breedon 2/2 with the Russian invasion of Ukraine and continued US/China political tensions. Mohamed A. El-Erian 9/12 Macroeconomic risks have also increased Dawn Fitzpatrick 12/12 as most major economies faced slowing Brian Gilvary 11/12 growth against a backdrop of high inflation, Diane Schueneman 8/12 energy market shocks and rising interest 3 Julia Wilson 5/5 rates, resulting in increased affordability Notes Committee membership in 2022 pressures for consumers. a There were nine scheduled meetings and three ad-hoc 1 Appointed with effect from 1 March 2022. meetings of the Committee in 2022. Owing to prior 2 Retired with effect from 28 February 2022. Another theme for Barclays throughout commitments, Mohamed A. El-Erian was unable to 3 Appointed with effect from 1 September 2022. this year has been UK political uncertainty, attend one scheduled meeting and two ad-hoc meetings, Notes Diane Schueneman was unable to attend three with the ‘mini-budget’ in September scheduled meetings and one ad-hoc meeting and Brian causing market disruption, notably the Gilvary was unable to attend one ad-hoc meeting. sudden shifts in demand for UK gilts, b Committee allocation of time (%) closely followed by the appointment of another new Prime Minister and a further 2022 2021 fiscal budget. Given the ongoing uncertain 36 46 n Risk profile/appetite macroeconomic and geopolitical 50 34 n Key risk issues/monitoring environment, as a Committee, we spent a 9 18 n Internal controls/risk policies 5 2 n Other significant amount of time during the year b Including ad hoc meetings. hearing directly from the business, alongside risk and compliance colleagues, about how they are managing the associated risks and what mitigating The Committee also devoted attention to Risk appetite actions are being taken. The Committee assessing the full range of risks associated A key role of the Committee is to remains watchful of the implications of with implementing strategic opportunities, recommend to the Board an appropriate these themes, as well as the longer term such as the digital transformation risk appetite for the Group. Risk appetite consequences of the UK’s withdrawal from programme within Barclays UK, represents the amount of risk the Group is the EU, possible political uncertainty in acquisitions and growth initiatives. The able to take to earn an appropriate return other key jurisdictions and the potential for Committee continues to encourage while meeting minimum internal and disorderly market corrections and management to be alert to areas of regulatory capital requirements in a severe economic slowdowns across the globe. emerging risk, particularly in light of the but plausible stress environment. The rapidly evolving macroeconomic and In addition to the geopolitical and Committee analyses Barclays’ geopolitical climate. macroeconomic climate, the Committee performance in both its internally has continued to focus on the Set out below are some of the key areas of generated stress tests and those management of the Group’s non-financial the Committee's work in 2022, but you can developed externally by such bodies as the risks, including operational risks, such as read more about how the Committee Bank of England (BoE) and the FRB in the cyber-related vulnerabilities, conduct risks, discharged its duties in the table on pages US and, following such analysis, may including those related to the facilitation of 182 to 185. recommend adjustments to the Group’s financial crime, and the work undertaken to overall risk profile. mitigate the risks associated with the Over-issuance of Securities.