Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 423

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 423
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 challenge of the Group’s ICAAP and ILAAP,and provided its recommendation to the Board for approval. The GRC continued tomonitor Interest Rate Risk in the Banking Book (’IRRBB’) sensitivity, structural hedgingstrategy and the ongoing activities to develop the Group’s capabilities for internalreporting and enhanced external disclosures. An education session on IRRBB was heldin April to provide the Committee with the Group’s latest position, context around theregulatory feedback and an overview of the different components of IRRBB.–The GRC reviewed the Group’s ongoing activities to identify, manage and mitigatetreasury, capital and liquidity risks, including early warning indicators, sensitivityanalysis, capital and liquidity reporting and adequacy.–In relation to stress testing exercises, the GRC reviewed the Group Recovery Planstress scenarios in March and September. The GRC also considered the Group-wideinternal stress test, scenarios and outputs, which contribute to the Group’scommitment to regularly test the resilience of the balance sheet and profit and lossunder multiple scenarios of varying severity. An internal climate scenario analysis wasundertaken, with results presented in February 2024.–As part of its regulatory obligations, the Group is required to show how its recoveryand resolution strategies could be executed effectively and identify any risks tosuccessful implementation. The GRC continued its oversight of the Group’s progress inmaintaining and developing its capabilities under the Bank of England’s requirementsfor resolvability. The GRC has been regularly updated on the Group’s implementationof the PRA’s Trading Activity Wind Down requirements in preparation for the March2025 deadline, which will require the Group to have implemented a set of capabilitiesthat will allow the execution of a full or partial wind down of its trading activities in anorderly fashion. In March 2024, the GRC reviewed the Resolvability AssessmentFramework public disclosure and made a recommendation to the Board for approval. InJune 2024, management presented the 2024 Group Recovery Plan ahead of itssubmission to the PRA in June. The plan was also recommended to the Board forapproval. The Chairs of the GRC and the GAC both received comprehensive briefingsprior to the presentation of both submissions. |

| 304 | HSBC Holdings plcAnnual Report on Form 20-F |

Report of the Directors | Corporate governance report | Board committees

| Principal activities and significant issues considered during 2024 (continued) |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Risk