• Connectivity of information
• Strategic focus and future orientation

Key observations:

Lloyds Banking Group’s risk overview effectively presents the fundamental links between the risk assessment process, strategic planning, mitigation and sustainable value growth. It begins by stating that the business sees the risk management as a differentiator, which demonstrates the importance of the matter. The key achievements of 2013 are then outlined, accompanied by the immediate priorities for 2014. This is accompanied by a description of how the organisation’s governance structure accounts for the risks of the financial sector and the fundamental values that directs it. This is comprehensively illustrated in a hierarchal diagram of the organisation’s risk framework.

Finally, the report provides an in-depth table of Lloyds Banking Group’s principal risks, its mitigating actions, the key risk indicators by which its performance is measured, and the areas on which it will focus for the future. Helpfully, each component of the section is cross-referenced to other areas of relevance in the report.