Strategic Report
Governance Report
Financial Statements
Company Financial Statements
Principal risks The principal risks facing the Group are detailed below, as well as any change in the year-on-year risk profile.
Principal risks Definition
Key risks identified by the risk management framework
Change since last year
Rationale for change
1. Strategic risk The risk of having an inadequate business model or making strategic decisions that may result in lower-than-anticipated profit or losses or exposes the Group to unforeseen risks. 2. ESG risk The risk that environmental, social and governance factors could negatively impact the Group, its clients and the wider community. 3. Capital risk The risk of adverse business and/or client impact resulting from breaching capital requirements. 4. Credit risk The risk of loss arising from a client or counterparty failing to meet their financial obligations to a Brooks Macdonald entity as and when they fall due.
• Acquisitions and sales • Business growth • Extreme market events • Investment performance
Unchanged →
The risk remains unchanged. The Group has successfully completed strategic acquisitions and sold its International business during the financial year. The Group’s Investment and Financial Planning businesses continue to support business growth. This risk remains unchanged. The Group has an Environmental, Social and Governance Advisory Committee (“ESGAC”) to manage all ESG-related matters. The Group is committed to creating an inclusive workplace and prioritising employee wellbeing. The Group has a robust governance framework. The risk remains unchanged. The Group continues to maintain capital resources above its minimum regulatory requirement and internal thresholds. The Group regularly monitors its capital resources versus capital requirements. The risk remains unchanged. The Group has a strong credit risk control environment, including ongoing monitoring and due diligence on all counterparties.
• Environmental, physical and transition • Diversity, equity and inclusion • Governance
Unchanged →
• Capital requirements
Unchanged →
• Cash deposits with external banks • Client credit risk • Counterparty credit risk • Custodian-related credit risk • Indirect counterparty risk in respect of referrals
Unchanged →
Brooks Macdonald Group plc Annual Report and Accounts 2025
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