Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 393

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 393
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 Shifting Pillar Two Framework introducing a global minimum tax rate of 15%. The UK’s Pillar Two rules applied from 1 January 2024 and increased the Group's tax compliance obligations . In the US, the corporate alternative minimum tax on adjusted financial statements income introduced by the Inflation Reduction Act became effective on 1 January 2023. These tax regimes require systems and process changes that introduce potential additional operational risks. k) Ability to hire and retain appropriately qualified employees As a regulated financial institution, the Group requires diversified and specialist skilled colleagues. The Group’s ability to attract, develop and retain a diverse mix of talent is key to the delivery of its core business activity and strategy. This is impacted by a range of external and internal factors , such as the Group's reputation, macroeconomic factors (including increased competition for limited resources during economic growth periods), governmental factors (including, labour, immigration and related policies in the jurisdictions in which the Group operates), and regulatory factors (including compensation restrictions for senior executives). Failure to attract or prevent the departure of appropriately specialised employees could have a material adverse effect on the Group’s business, results of operations, financial condition and prospects. Additionally, this may result in disruption to service which could in turn lead to customer harm and reputational damage.

| For further details on the Group’s approach tooperational risk, refer to theoperational riskmanagementandoperational risk performancesections. |

vi) Model risk Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. The Group relies on models to support a broad range of business and risk management activities, including informing business decisions and strategies, measuring and limiting risk, valuing exposures (including the calculation of impairment), conducting stress testing, calculating RWAs and assessing capital adequac y, supporting new business acceptance, risk and reward evaluation, managing client assets, and meeting reporting requirements. Models are imperfect representations of reality as they rely on simplifying assumptions; as such they are subject to intrinsic uncertainty as well as errors and inappropriate use. This may be exacerbated when dealing with unprecedented scenarios, as was the case during the COVID-19 pandemic, when simplifying assumptions were required due to the lack of reliable historical reference points and data. Model uncertainty, errors and inappropriate use may result in (among other things) the Group making inappropriate business decisions and/or inaccuracies or errors in the Group's risk management and regulatory reporting processes . This could result in a significant financial loss, imposition of additional capital requirements, enhanced regulatory supervision and