Strategic Report
Governance Report
Financial Statements
Company Financial Statements
Principal risks continued Definition
Key risks identified by the risk management framework
Change since last year
Rationale for change
10. Financial crime risk The risk of failure to protect the Group and its customers from all aspects of financial crime, including anti-money laundering (“AML”) and market abuse. 11. Conduct risk The risk of causing detriment to clients, stakeholders or the integrity of the wider market because of inappropriate execution of the Group’s business activities.
• Fraud • AML • Market abuse
Unchanged →
This risk remains unchanged. The Group maintains robust controls to minimise financial crime.
• Conduct/consumer harm
Unchanged →
The risk remains unchanged. The Group continues to work on numerous initiatives to promote a good risk and compliance culture and awareness to ensure positive client outcomes.
Emerging risks
Definition
Context
12. Geopolitical landscape The unstable political landscape and ongoing conflicts in Ukraine and the Middle East. 13. Disruptive technologies The risk that innovative technologies significantly alter the way businesses operate.
Geopolitical events have a direct impact on market risk listed previously. Any economic downturn could also impact client sentiment and contribute to increased strategic risk.
With the introduction of new technologies, particularly AI, the industry is being impacted, especially automated trading, investment advice, fraud detection, customer service and portfolio management.
Brooks Macdonald Group plc Annual Report and Accounts 2025
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