Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 424

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 424
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| Regulatorycompliance risk                                                      | As a result of operating in multiplejurisdictions globally, HSBC is exposed to risksassociated with inappropriate market conductor breaching related financial servicesregulatory standards or expectations.                                                                                                     | –The GRC and its members actively engage with regulators and act on feedback. TheCommittee closely monitors the progress of regulatory remediation activities, with supportfrom the Group Chief Risk and Compliance Officer as well as principal subsidiary riskcommittee chairs. Throughout the year, the GRC had oversight over reports providingfeedback from regulators, including a summary of regulatory deliverables to ensure HSBCremains in line with regulatory standards and expectations.–The GRC also considered the 'Statement of Compliance' exercise, which is an assessment ofSignificant Regulatory Matters undertaken for principal subsidiary CEOs, providing an opinionas to how well managed these are and where gaps may exist. Further to a pilot undertaken inMexico, this approach is now being rolled out across all principal subsidiaries.                            |
| Legal risk                                                                     | HSBC is exposed to the risk of financial loss,legal or regulatory action resulting fromcontractual risk, dispute management risk,breach of competition law or intellectualproperty risk.                                                                                                                         | –The GRC oversees and receives regular updates on key legal developments and material legalissues from the Group Chief Legal Officer. The updates also cover material litigation andregulatory enforcement matters and an overview of the legal risk profile of HSBC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Climate risk                                                                   | Environmental, social and governance riskspresent significant risks to organisations bothin terms of their own operations and how theyengage with stakeholders and communities.                                                                                                                                  | –The GRC remained focused on climate risk and greenwashing risk. The GRC received reportson climate risk management and sustainability risk policies, while maintaining oversight ofdelivery plans and risk appetite breaches to help ensure that the Group continues to developand maintains robust climate risk management capabilities. Reputation risk considerationshave also formed part of these discussions.–The GRC approved the 2024 internal climate scenario analysis in February 2024. Theoutcomes will be used to respond to multiple regional regulatory climate exercises as well asmeeting regulatory expectations on incorporating climate change within the Group’s strategicplans and ICAAP.                                                                                                                                                                                   |

Committee performance review 2024/2025 In 2024 the annual review of the performance of the Board Committees, including the GRC, was conducted externally by IBE. On the basis of the review, Directors concluded that the GRC continued to operate effectively. Areas for enhancement were identified, including