Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 422

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 422
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 that the committees benefited from each other’s expertise and challenge. Coordination between the GRC, GAC and the GTOC is supported by cross-membership. The GRC Chair attends the GAC, the GTOC Chair attends the GRC, and the GAC Chair attends both the GTOC and GRC, strengthening connectivity and the flow of information between the committees.

| HSBC Holdings plcAnnual Report on Form 20-F | 303 |

The GRC and Group RemCo work collaboratively to consider risk adjustment to the variable pay pool as part of the Group reward process, given the integral nature of risk management to the Group’s performance culture. This year, the committee has also considered improvements to the Risk and Reward framework.

| Principal activities and significant issues considered during 2024 |                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Risk areas                                                         | Key issues                                                                                                                                                                                                                                                                                                                                                                                                              | Conclusions and actions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Holisticenterprise riskmonitoring,including Grouprisk profile      | Macroeconomic, geopolitical and other emergingrisks have the potential to present significantchallenges to revenue growth, operational resilienceand our commitment to serve customers and localmarkets.                                                                                                                                                                                                                | –The GRC closely monitored geopolitical and macroeconomic risks that could impactthe Group’s strategy, business performance or operations. These risks wereexacerbated by ongoing conflict between Russia-Ukraine, the Israel-Hamas conflictand rising political tensions between the US and China. The resulting sanctions riskfrom these events has required significant focus and oversight by the Committee.While market sentiment and economic growth had been more positive than forecast,the real estate sector continued to experience pressure, particularly in mainlandChina and Hong Kong.–The GRC continued to track top and emerging risks, our risk appetite and othermanagement information metrics, as well as other early warning measures tounderstand sensitivities and the likelihood of the potential impact to our operations,customers and stakeholders. The GRC provided oversight and challenge of a robustbook of strategic management actions to respond to potential downside scenarios.–The GRC requested reports on the risk profile of key business areas in localgeographies and invited principal subsidiary chairs and relevant management toattend and participate in discussions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Risk frameworkand policies                                         | Effective risk management policies, frameworks,appet