Risk management
Principal Risks
Key risks identified by the risk management framework
Change since last year Rationale for change
11. Environmental, Social & Governance (“ESG”) risk The risk that environmental, social and governance factors could negatively impact the Group, its clients and the wider community.
Unchanged
• Environmental, physical and transition • Diversity, equity and inclusion • Governance
This risk remains unchanged. The Group has established 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.
Emerging Risks Definition
Context
12. Geopolitical landscape The relatively unstable political landscape, with numerous significant general elections in 2024 and ongoing conflicts in Ukraine and the Middle East. 13. Generational wealth change The potential decrease in FUM as financial assets are distributed from one generation to the next. 14. Disruptive technologies The risk that innovative technologies significantly alter the way businesses operate.
Geopolitical events have a direct impact on market risk listed previously. Prolonged economic downturn also has an impact on client sentiment and thus strategic risk as listed previously. The large majority for Labour in the UK general election is viewed as being good for market sentiment and stability.
With generational wealth poised to change hands, primarily from the baby boomers to Gen X and millennials through the next decade, younger investors may have different priorities and views on how their inheritance is managed.
With the introduction of new technologies such as AI, the industry is being impacted particularly in automated trading, investment advice, fraud detection, customer service, and portfolio management.
42 Brooks Macdonald Group plc Annual Report and Accounts 2024
Made with FlippingBook - professional solution for displaying marketing and sales documents online