Strategic report Governance Financial statements Other information RISK COMMITTEE REPORT CONTINUED Role of the Risk Committee Committee appointments are made for three-year terms and can Overview of the Committee’s activities The Committee assists the Board in its oversight of risk within the be extended for no more than two additional three-year terms. in the year to 30 June 2021 Group. It has a particular focus on reviewing and advising the Board Committee membership is regularly reviewed by the Committee on changes to the Group’s risk appetite, and monitoring the 14% 19% effectiveness of, and improvements being made to, the Group’s Chair, who makes suggestions for appointments to the Risk exposures Internal Capital Nomination Committee, which may in turn recommend such and reporting Adequacy risk management framework. The Committee also advises the appointments to the Board for approval. New members receive Assessment Board on changes to the Group’s risk profile and future risk Process (ICAAP) strategy, as well as reviewing reports on material breaches to an induction prior to joining the Committee which is tailored to the Group’s approved risk limits. However, the Board as a whole their respective needs. Ongoing training is provided to assist remains responsible for the Group’s risk management and Committee members in performing their duties. strategy, and for determining an appropriate risk appetite. The Committee met seven times in the period under review. The Committee plays a key role in overseeing the delivery of the The attendance of members at meetings across the year is set Group’s ICAAP and supports the Remuneration Committee by out in the table on page 121. Other individuals attend Committee 28% advising on risk considerations to be taken into account when meetings at the request of the Committee Chair. This will usually Governance and other include the Chair of the Board, the Chief Executive Officer, the 39% determining bonus pools and Executive remuneration. The Risk maturity, Committee reviews reports from the Chief Information Security Chief Financial Officer, the Group Chief Risk Officer and the Chief management and framework Officer on IT security and the cyber risk control environment. Internal Auditor. Prior to the appointment of the Group Chief Risk Officer in January 2021, the Chief Risk Officer and the Group The detailed responsibilities of the Committee are set out in its Director of Risk and Compliance attended the Committee terms of reference, which are available on the Group’s website at meetings. The Committee has access to the Group Company www.hl.co.uk/about-us/board-of-directors. Secretary, who also acts as secretary to the Committee. This report provides an overview of how the Committee has The Committee is authorised to obtain independent professional discharged its responsibilities during the period under review. advice where it considers it necessary. Composition and meeting attendance Due to government restrictions arising as a result of COVID-19 As at the date of this report, the members of the Committee are the Committee has, until very recently, been meeting remotely Andrea Blance (Chair), Moni Mannings, Dan Olley, Roger Perkin throughout the period under review. The Committee does not and John Troiano. Dan Olley, Roger Perkin and John Troiano were consider that these alternative arrangements have had any impact members of the Committee throughout the period under review. on its ability to operate effectively and discharge its obligations. Moni Mannings and Andrea Blance have each been members of the Committee since their appointment on 1 September 2020. Shirley Garrood, Fiona Clutterbuck and Stephen Robertson were each members of the Committee until their resignations as Non-Executive Directors on 8 October 2020 (Fiona Clutterbuck and Stephen Robertson) and 31 December 2020 (Shirley Garrood). Shirley Garrood was Chair of the Committee until 4 December 2020. 122 Hargreaves Lansdown Report and Financial Statements 2021