|
|
|
|
|
|
|
|
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 risks
to 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 and
regulatory 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. |
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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.
