What types of risk exist at HSBC?

What types of risk exist at HSBC?

Operational risk

  • Overview.
  • Operational risk, current page Operational risk.
  • Reputational risk.
  • Sustainability risk.

How does HSBC manage risk?

HSBC has maintained a consistent approach to risk throughout our history, helping to ensure we protect customers’ funds, lend responsibly and support economies. By carefully aligning our risk appetite to our strategy, we aim to deliver sustainable, long-term shareholder returns.

Is HSBC all over the world?

HSBC has offices in 64 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America, serving around 40 million customers. As of 2020, it was the world’s sixth largest bank by total assets and market capitalization.

How many countries does HSBC operate in?

64 countries
We serve approximately 40 million customers through our global businesses: Wealth and Personal Banking, Commercial Banking, and Global Banking & Markets. Our network covers 64 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.

What is regulatory risk in banking?

Regulatory Risk is generally defined as the risk of having the ‘licence to operate’ withdrawn by a regulator, or having conditions applied (retrospectively or prospectively) that adversely impact the economic value of an enterprise.

What are HSBC values?

Our values

  • We value difference. Seeking out different perspectives.
  • We succeed together. Collaborating across boundaries.
  • We take responsibility. Holding ourselves accountable and taking the long view.
  • We get it done. Moving at pace and making things happen.

Which one of the following is an operational risk?

Operational risk has been defined by the Basel Committee on Banking Supervision1 as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk.

What makes a good risk appetite statement?

However, risk appetite must be measurable and relate to strategic, tactical and operational level and it should reflect the risk capacity and risk management maturity of the company. Another important factor identified by the IRM report is that risk appetite must be integrated with the control culture of the company.

Which country owns HSBC Bank?

The Mercantile Bank was bought in 1959 by The Hongkong and Shanghai Banking Corporation Limited. Founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China, Europe and the US, HSBC has been an international bank from its earliest days.

What is financial crime risk at HSBC?

Financial Crime Risk is a global function that brings together all areas of financial crime risk management at HSBC. The function enables the Group to set the industry standard for knowing our customers and detecting, deterring and protecting against financial crimes such as money laundering, sanctions, and bribery and corruption and fraud.

What are the different types of Risk Management at HSBC?

It manages a varied range of risks, including security, information security, contingency, geopolitical, operational, credit, pension, insurance, compliance, regulatory, market and reputational. Financial Crime Risk is a global function that brings together all areas of financial crime risk management at HSBC.

Why work with HSBC Global Legal?

This enables management and risk and audit committees to understand whether they are operating effectively. Global Legal plays an important role in protecting HSBC’s reputation, helping to safeguard the organisation by providing robust and comprehensive advice on legal issues and risks.

What do HSBC’s global functions do?

Our operational and functional teams around the world help HSBC’s Global Businesses to operate efficiently and effectively on a day-to-day basis. They also focus on controls and governance to reduce risk and protect the Group’s reputation. Find out more about the work of each of our Global Functions below.