Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 187 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: How we comply (continued) Composition, Succession Audit, Risk and and Evaluation Internal Control Key controls are assessed on a regular basis All Board and senior management The Board, together with the Board Audit appointments are viewed through a diversity Committee, is responsible for ensuring the for both design and operating effectiveness. lens and are based on merit and objective integrity of this Annual Report and that the Issues arising out of these assessments, criteria, which focus on the skills and financial statements as a whole present a where appropriate, are reported to the experience required for the Board's fair, balanced and understandable Board Audit Committee. The Board Audit assessment of our performance, position Committee oversees the control effectiveness and the delivery of the Group's strategy. Board appointments are made and prospects. environment (and remediation of related following a rigorous and transparent process issues). The Board Audit Committee also The Board, together with the Board Audit facilitated by the Board Nominations reviews annually the risk management and Committee, is responsible for ensuring the Committee, with the aid of external search internal control system. It has concluded independence and effectiveness of the that, save for the material weakness relating consultancy firms. A revised Board Diversity internal audit function and external auditors. Policy was adopted on 15 December 2022. to the Over-issuance of Securities, Refer to the Board Nominations Committee throughout the year ended 31 December You can read more about the Board Audit Report on pages 157 to 168 for further 2022 and to date, the Group has operated an Committee and its work on pages 169 to detail. effective system of internal control that 177. provides reasonable assurance of financial Biographies for each member of the Board, The Directors are responsible for ensuring and operational controls and compliance including details of their relevant skills, that management maintains an effective with laws and regulations. experience and contribution to the Board are system of risk management and internal provided on pages 143 to 146. Whilst the control environment was control and for assessing its effectiveness. determined to be effective, the Over- Such a system is designed to identify, Each year, we carry out an effectiveness issuance of Securities underlined to the evaluate and manage, rather than eliminate, review to evaluate the performance of the Board the need to continue to focus on the risk of failure to achieve business Board, Board Committees and individual embedding Barclays' Values and Mindset at objectives and can only provide reasonable, Directors. The review was conducted all levels of the organisation to achieve and not absolute, assurance against material internally in 2022, as detailed in the Board operational and controls excellence. The misstatement or loss. Nominations Committee report on pages Board has therefore supported the creation 166 to 168. Processes are in place for identifying, of a Group-wide programme, established by evaluating and managing the Principal Risks the Group Chief Executive. This programme facing the Group. A key component of The will seek to identify issues and lessons Barclays Guide is the ERMF. The purpose of learned across the Group's remediation the ERMF is to identify and set minimum initiatives to help ensure that Barclays is requirements of the main risks to the consistently excellent, in customer and client strategic objectives of the Group. service, in operational capability and in financial performance, with all activities The Group is committed to operating within underpinned by a strong risk management a strong system of internal control. The culture. Barclays Guide contains the overarching framework setting out the approach of the For further information in relation to controls Group to internal governance. over financial reporting, including the remediation of material weakness relating to the Over-issuance of Securities, please see pages 194 to 195.