Strategic report Governance Financial statements Other information RISK MANAGEMENT AND THE PRINCIPAL RISKS AND UNCERTAINTIES EVALUATING AND MANAGING RISKS CONTINUED Taxonomy Level 1 Operational Taxonomy Level 2 Operational Resilience Owner: Risk Mitigation and controls Key risk indicators Chief Executive Officer, Risk that HL fails to establish robust •Group wide project • System downtime Chief Financial Officer operational resilience solutions to support •Business Impact Analysis • Process failures Link to strategy: positive client outcomes •Business Continuity Plans • Crisis management response •Disaster Recovery Plans Potential impact •Crisis Management Team 2020/21 activity • Poor client outcomes •Desktop scenarios • Recruitment of additional skilled SMEs • Operational inefficiencies or failures •Scenario based playbooks • Further development of playbooks Link to HL values: Reputational damage Review and enhancements to crisis management • • Put the client first, do the right and Incident management approaches thing, make it easy, do it better Regular training • 2020-2021 Change • Establishing a programme to deliver the regulatory INCREASING requirementsResponding to the impacts of COVID-19 • Taxonomy Level 1 Operational Taxonomy Level 2 People Owner: Risk Mitigation and controls Key risk indicators Chief Executive Officer1 Risk that HL fails to attract, retain, develop Operational inefficiency or poor conduct Employee retention rates • • Link to strategy: and motivate great people who are aligned •Poor client outcomes • Employee absence monitoring to HL Values. •Reputational damage 2020/21 activity Potential impact • Updated contingency planning for key roles • Operational inefficiency or poor conduct • Implementation of new internal communication plan Link to HL values: Poor client outcomes Leadership Development programme for all Senior leaders • • Put the client first, do the right Reputational damage People communications through the HL Way to support • • thing, make it easy, do it better HL Value 2020-2021 Change • Responding to the impacts of COVID-19 on our colleagues INCREASING 1 Chief Executive Officer is the temporary owner whilst a new Chief People Officer is appointed 58 Hargreaves Lansdown Report and Financial Statements 2021