Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 214

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 214
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. As we implement change initiatives, we actively manage the execution risks. We also perform periodic risk assessments, including against strategies, to help ensure retention of key personnel for our continued safe operation. We aim to use a comprehensive risk management approach across the organisation and across all risk types, underpinned by our culture and values. This is outlined in our risk management framework, including the key principles and practices that we employ in managing material risks, both financial and non-financial. The framework fosters continuous monitoring and promotes risk awareness and a positive risk culture. It encourages a sound operational and strategic decision- making and escalation process. It also supports a consistent approach to identifying, assessing, managing and reporting the risks we accept and incur in our activities, with clear accountabilities. We actively review and enhance our risk management framework and our approach to managing risk. Group Risk and Compliance is independent from the global businesses, including our sales and trading functions. It provides challenge, oversight and appropriate balance in risk/return decisions.

| HSBC Holdings plcAnnual Report on Form 20-F | 145 |

Our risk management framework The following diagram and descriptions summarise key aspects of the risk management framework, including governance, structure, risk management tools and our culture, which together help align employee behaviour with risk appetite.

| Key components of our risk management framework                                        |                               |     |                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
| HSBC values and risk culture                                                           |                               |     |                                                                                                                                                                                                                |                                                                                                                                                                                                                                      |
| Risk governance                                                                        | Non-executive risk governance |     |                                                                                                                                                                                                                | The Board approves the Group’s risk appetite, plans and performancetargets. It sets the ‘tone from the top’ and is advised by the Group RiskCommittee (see page281).                                                                 |
| Executive risk governance                                                              |                               |     | Our executive risk governance structure is responsible for the enterprise-wide management of all risks, including key policies and frameworks for themanagement of risk within the Group (see pages145and167). |                                                                                                                                                                                                                                      |
| Roles andresponsibilities                                                              | Three lines of defence model  |     |                                                                                                                                                                                                                | Our ‘three lines of defence’ model defines roles and responsibilities for riskmanagement. An independent Group Risk and Compliance function helpsensure the necessary balance in risk/return decisions (see page145).                |
| Processes and tools                                                                    | Risk appetite                 |     |                                                                                                                                                                                                                | The Group has processes in place to identify, assess, monitor, manage andreport risks to help ensure we remain within our risk appetite and to