Strategic report Governance Financial statements Other information RISK COMMITTEE REPORT DRIVE FOR CONTINUOUS IMPROVEMENT Dear Shareholder Ensuring the Group’s risk Having been appointed Chair of the Risk Committee in December management supports good 2020, I am pleased to present the Committee’s report for the year client outcomes. ended 30 June 2021. I would like to thank Shirley Garrood for her valuable contributions during her tenure as Committee Chair. The Committee has continued its drive for continuous improvement in the risk management across the Group and I am pleased to inform you that a new Group Chief Risk Officer, Shawn Gamble, joined in January 2021 to enhance leadership and capability. The Committee carried out a detailed review of the Group’s 2020 Last year, our report highlighted that we would be commissioning ICAAP prior to its recommendation to, and subsequent adoption an external assessment of the Group’s risk management by, the Board in December 2020. To support this activity the framework and during the period under review the Committee Committee requested focused papers on stress testing, the Pillar has been reviewing the outcomes of that external assessment . 2 self-assessment and the wind down plan. The Committee has been working closely with the executive team During the period under review the Group experienced one brief and the new Group Chief Risk Officer to oversee the actions taken period of total outage of the Group’s platform and two brief in response to this review, to ensure that the Group’s risk periods of partial outage, described in more detail below. The management continues to support good client outcomes and Committee has, therefore, been heavily involved in reviewing the Attendance at Committee meetings during the year to 30 June 2021 mitigate the risk of harm as well as overseeing the continued shift Group’s operational resilience and ensuring that lessons have been Eligible Attended and improvement of risk management responsibilities to the identified and actions taken forward to reduce the Group’s Member Position meetings meetings Group’s first line teams. exposure to future events. Andrea Blance Chair •••••• •••••• (from 4 December 2020) The Committee has approved increased resource capacity and I will be available to answer any questions at the AGM. If there Moni Mannings Independent capability in the second line and approved the next phase for the are government measures in force restricting physical public •••••• •••••• Non-Executive Director Risk Enhancement Plan in June 2021 with a number of particular gatherings at the time of the AGM and limiting shareholders’ ability Dan Olley Independent ••••••• ••••••• areas of focus set out in more detail in the report below. The to attend and ask questions then, as in 2020, shareholders will be Non-Executive Director Committee will be actively overseeing the implementation of the invited to send questions to our company secretarial team by Roger Perkin Independent ••••••• ••••••• revised Risk Enhancement Plan throughout the next financial year. email. Further details will be set out in the Notice of AGM. Non-Executive Director John Troiano Independent ••••••• ••••••• An important focus of the Committee has been to oversee Non-Executive Director management’s response to COVID-19 ensuring that the impacts Shirley Garrood Chair •••• •••• on the Group’s principal risks have been understood and appropriate (until 4 December 2020) decisions taken. The Committee has also considered papers from Fiona ClutterbuckIndependent •• •• management setting out improvements to risk management Non-Executive Director Stephen Independent activity across both the first and second lines of defence •• •• and across the Group’s risk profile, including cyber-security, Robertson Non-Executive Director anti-money laundering, bribery and corruption and investment risk. 121 Hargreaves Lansdown Report and Financial Statements 2021