Strategic report Governance Financial statements Other information RISK MANAGEMENT AND THE PRINCIPAL RISKS AND UNCERTAINTIES EVALUATING AND MANAGING RISKS 1. Risk management mitigating, managing and monitoring risk which is described below. Hargreaves Lansdown The Board has ultimate responsibility for the manages risk at a consolidated level. Group’s risk management and determining an appropriate risk appetite as well as settingThe Group includes four principal operating legal related tolerance levels within which the Groupentities, each of which is supported by a Legal must operate. Entity Board and a Management Committee. This Legal entity structure manages the normal To assist the Board in discharging its course of business, to agreed risk appetites, with responsibilities, the Group has implemented escalation on an agreed materiality basis to the a comprehensive approach to identifying, Group Executive Committee. Fig 1 Our risk management framework and reporting schematic Policies Core Risk Frameworks Risk Cycle Governance Group Risk Management Policy Risk Management & Internal Control Policy Internal Controls Framework Risk Assurance Policy Identify BRC* Emerging Risk Policy Risk Taxonomy Risk Category Boundaries Policy Level 1: 4 Risk Categories Level 2: 31 Principal risks Report Assess Group Core Risk Category Policies Level 3: 80+ core risks Strategic Financial Risk Appetite Framework ERC** Operational Investment Risk & Control Self Assessment Risk Events & Escalation Monitor Mitigate Model Risk & Legal Entity Risk Acceptance Governance Compliance Management Manage Committee Assurance Structure ICAAP Approach & Control (MGC) Committee (RAC) * plc Board Risk Committee (BRC) ** Executive Risk Committee (ERC) 50 Hargreaves Lansdown Report and Financial Statements 2021