Our conservative risk culture is among HSBC’s signature strengths. It is key to the bank’s past and continued success.
We use a consistent risk management framework at all levels of the organisation and across all risk types. It sets out governance and structures, responsibilities and processes in monitoring, managing and mitigating the risks we accept and incur in our activities. The framework is underpinned by our conservative risk culture and is reinforced by our values and our Global Standards – the robust controls that we are putting in place to help us detect, deter and prevent financial crime.
The environment in which we operate changes all the time, and so monitoring risk is a continuous process. Risks come in many different forms. Some are long-term and others short-term: while some arise from factors within our control, others are caused by external events. We aim to make an integrated evaluation based on an overall understanding of all the different risks we face and the interactions between them.
Further details of our risk management framework and its key components, as well as our exposure to risks arising from the business activities of the global businesses, are set out in the Group’s Annual Report and Accounts.
In line with our ambition to be recognised as the world’s leading international bank, we aspire to set the industry standard for knowing our customers and detecting, deterring and protecting against financial crime.
Operating with high standards of conduct is central to our long-term success. We have processes, policies and a culture designed to deliver fair outcomes for customers and protect the integrity of financial markets.
We have an unwavering commitment to operating at high standards. Any lapse in standards of integrity, compliance, customer service or operating efficiency represents a potential reputational risk.
Operational risk is the risk to achieving our strategy or objectives as a result of inadequate or failed internal processes, people and systems or from external events.
We apply the spirit as well as the letter of the law in all territories where we operate, and have adopted the UK Code of Practice for the Taxation of Banks.
At HSBC, we are committed to providing a safe physical environment for our customers and employees as well as those who work with us.
We expect businesses who supply goods and services to HSBC to operate responsibly. Our supplier code sets out the standards we require.