Risk Committee

David Woods is the Chairman of the Risk Committee. The other members are René-Pierre Azria, Tom Cross Brown, Isabel Hudson and Hugh Osmond. The Risk Committee met five times in 2010 following its establishment on 26 February 2010.

The establishment of a Risk Committee is not a requirement of the Combined Code. However, the Board believes such a Committee is important to ensure the robust management of risk for the Group. The composition of the Committee, with a majority of independent Non-Executive Directors, is in accordance with the final recommendations of the report by Sir David Walker, ‘A review of corporate governance in UK banks and other financial industry entities.’

The Risk Committee advises the Board on risk appetite and tolerance in setting the future strategy, taking account of the Board’s overall degree of risk aversion, the current financial situation of the Company and, drawing on assessment by the Audit Committee, the Company’s capacity to manage and control risks within the agreed strategy. It advises the Board on all high-level risk matters but does not extend into operational matters which are for the executive within the overall risk framework determined by the Board.

Risk Committee Terms of Reference