Strategic Report
Governance Report
Financial Statements
Other Information
Principal Risks
Key risks identified by the risk management framework
Change since last year Rationale for change
6. Conduct risk The risk of causing detriment to clients,
Unchanged
• Conduct/consumer harm risk
The Group continues to work on numerous initiatives to promote good risk and compliance culture and awareness to ensure positive client outcomes.
stakeholders or the integrity of the wider market because of inappropriate execution of Brooks Macdonald’s business activities. 7. Operational risk The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
Unchanged
• Financial control • Change • IT infrastructure • Operational resilience • Deferred delivery • Third parties • People • Suitability
The Group continues to monitor and enhance its oversight framework to mitigate any external threats brought about by the current geopolitical environment, coupled with idiosyncratic risks linked to the Group’s transition to a new operating model.
8. Legislation and regulatory risk Legislation and regulatory risk is defined as the risk of exposure to legal or regulatory penalties, financial forfeiture and material loss due to failure to act in accordance with industry laws and regulations. 9. 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. 10. Cyber risk The risk of a malicious attack by individuals or organisations attempting to gain access to the Company’s network to corrupt data, disrupt, and steal confidential information.
Unchanged
• Regulatory • Legal • Tax
This risk remains unchanged given that the regulatory landscape and focus on the wealth management industry has not changed.
Unchanged
• Fraud • AML • Market abuse
This risk remains unchanged, the Group maintains robust controls in place to minimise financial crime.
Unchanged
• Cyber
The cyber threat landscape remains at a heightened level (unchanged, year-on- year), with a high volume of sophisticated cyber threat activity.
Brooks Macdonald Group plc Annual Report and Accounts 2024
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