Group Risk

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We review and set the Risk appetite across the organisation. We work collaboratively, protecting the business and working with them to manage their risks. We're split into several teams all of which you'll find detailed below.

Commercial Credit Risk

We make sure our commercial lending is at the right level of risk for the Board. And they support the commercial division and help it achieve its objectives. This includes:

  • developing and communicating commercial credit policies and procedures
  • approving and controlling commercial loans
  • giving guidance and advice to all business areas involved in commercial lending
  • developing applications to help us measure risk and produce management information
  • designing, building and monitoring credit risk rating models.

Secured Credit Risk

We review our financial risks (so that's liquidity, market, pension and capital). They also support the business by making sure we're identifying risks and managing them in line with our Group risk appetite and policies. This includes:

  • giving guidance to business areas on financial risk issues that come up around business-as-usual activities
  • advising on new products
  • giving us guidance on changes in the business and regulatory environment
  • reviewing and challenging risk frameworks, policies and strategies within the business,
  • to make sure we always comply with the right rules and regulations.

Unsecured Credit Risk, Data & Systems & Financial Planning

We manage lending risk across credit cards, personal loans and flex accounts. There are several divisions within the team covering different areas:

  • the Operational Model Development team look after the development of all our retail application, behavioural and collections scorecards
  • the Financial Planning team develop and look after retail loss forecasting and provisioning models. They also make sure we get IRB status for our retail credit portfolios
  • the Systems team look after the systems we use to deploy models and strategies that make automated lending decisions. This includes the development work we need to migrate our retail products to the new Strategic Risk Infrastructure (SRI)
  • the Projects team manage our relationships with credit reference agencies. They're also the project office for all major Group Risk projects.

Group Financial & Strategic Risk Oversight

We review our financial risks (so that's liquidity, market, pension and capital). They also support the business by making sure we're identifying risks and managing them in line with our Group risk appetite and policies. This includes:

  • giving guidance to business areas on financial risk issues that come up around business-as-usual activities 
  • advising on new products
  • giving us guidance on changes in the business and regulatory environment
  • reviewing and challenging risk frameworks, policies and strategies within the business, to make sure we always comply with the right rules and regulations.

Group Lending Risk Oversight

We look after our retail, commercial and treasury credit portfolios. That means they make sure anything we're doing in these areas follows the policies and processes already in place. And that it's all at the right level of risk for the Board. This includes:

  • making sure we're lending the right amount to the right customer at the right time
  • checking we're not lending to just one type of customer (as this could leave us vulnerable)
  • looking outside Nationwide to find and deal with any lending-related issues before they affect us.

Group Modelling, Measurement & Methodology Oversight

We oversee the development and management of models at Nationwide.

Modelling helps us measure, understand and control risks. We use models to represent business systems, then run various scenarios to see what could happen if something goes wrong. They help us to decide how much of risk we want to take in different areas, and what could happen if we don't control them correctly.

Enterprise Risk Management

We support the Chief Risk Officer and Group Risk Director. We do this by managing the ERMF and standards for committee governance. They also manage the Group Risk Oversight Committee, Executive Risk Committee and Board Risk Committee.

Office of the Chief Risk Officer

We support the Chief Risk Officer. We're responsible for making sure the whole division has:

  • a clear and consistent framework
  • the right facilities to operate effectively
  • appropriate budgets for the projects we're working on.

Group Risk Strategic Change

Our team makes sure that:

  • Group Risk sponsored changes are implemented effectively in the division and across the business. This covers operational, lending, commercial and financial risk
  • The Group Risk operational strategy is robust and dynamic and is being delivered to plan
  • Group Risk influences and contributes to the overall corporate strategy
  • The division operates efficiently and effectively through the provision of a central service which includes many "business as usual" elements such as people planning, budget management, third party management and communications

Operational Risk

We manage operational, transformation and insurance risk. This includes:

  • providing policies, tools and methodologies to manage operational risks around the day-to-day running of the business
  • managing risks associated with major change programmes
  • making sure we're adhering to the risk policies and processes the Board have in place.

Property Risk

The team's made up of three functions who all report to the head of property risk. Overall, they make sure our supply chain and control processes are all best-in-class.

The Valuer team

They concentrate on valuing high risk locations and properties. They manage our external panel of valuers, too.

The Head of Valuation Operations

They manage the performance of the external panel. They also work with our Valuation Customer Service and Internal Valuation Admin teams in Bournemouth to help us improve the way we target work based on risk profiling.

The Policy team

They work with both of the above to create, develop and approve our valuation policies, and manage the manuals and guidance notes that go with them.