Last checked at 20 Mar 2015 16:38
Risk profile2 | 111 | ||
Managing risk2 | 112 | ||
Risk management framework | 112 | ||
Risk factors | 113 | ||
Risks managed by HSBC | 114 | ||
Risk management processes and procedures | 117 | ||
Risk governance | 204 | ||
Risk appetite | 205 | ||
Top and emerging risks2 | 118 | ||
Macroeconomic and geopolitical risk | 118 | ||
Macro-prudential, regulatory and legal risksto our business model | 119 | ||
Regulatory commitments and consent orders | 120 | ||
Risks related to our business operations, governance and internal control systems | 122 | ||
Areas of special interest2 | 124 | ||
Financial crime compliance andregulatory compliance | 124 | ||
Private Bank | 124 | ||
Regulatory stress tests | 125 | ||
Oil and gas prices | 126 | ||
Russia | 126 | ||
Eurozone | 126 | ||
Credit risk4 | 127 | 206 | |
Liquidity and funding4 | 163 | 215 | |
Market risk4 | 175 | 221 | |
Operational risk2 | 186 | 228 | |
Compliance risk | 189 | 229 | |
Legal risk | 229 | ||
Global security and fraud risk | 230 | ||
Systems risk | 231 | ||
Vendor risk management | 231 | ||
Risk management of insurance operations3 | 190 | 231 | |
Other material risks2 | 199 | ||
Reputational risk | 199 | 235 | |
Fiduciary risk | 200 | 235 | |
Pension risk | 200 | 236 | |
Sustainability risk | 201 | 237 | |
1 Appendix to Risk - risk policies and practices. | |||
2 Unaudited. 3 Audited. 4 Audited where indicated. | |||
For details of HSBC's policies and practices regarding risk management and governance see the Appendix to Risk on page 204.
Risk profile
(Unaudited)
Managing our risk profile
· A strong balance sheet remains core to our philosophy.
· Our portfolios continue to be aligned to our risk appetite and strategy.
· Our risk management framework is supported by strong forward-looking risk identification.
Maintaining capital strength and a strong liquidity position
· Our transitional common equity tier 1 capital ratio remains strong at 10.9%.
· We have sustained our strong liquidity position throughout 2014.
· The ratio of customer advances to deposits remains significantly below 90%.
Strong governance
· Robust risk governance and accountability is embedded across the Group.
· The Board, advised by the Group Risk Committee, approves our risk appetite.
· Our global risk operating model supports adherence to globally consistent standards and risk management policies across the Group.
Our top and emerging risks
· Macroeconomic and geopolitical risk.
· Macro-prudential, regulatory and legal risks to our business model.
· Risks related to our business operations, governance and internal control systems.