Our approach to managing our risks completely reflects our values. We want to be a different kind of bank, so the way we manage risk is different. Risk doesn’t have to be complicated. Our Risk Framework reflects our values and has the TSB mission at the heart of it.
We think good risk management has four fundamental goals:
- Keeping the bank safe
- Taking the right risks
- Learning from mistakes
- Instilling confidence
To get a better understanding of our risks and manage them more effectively, we group them into four categories:
- Financial risk – these are the risks associated with our customers’ money, our regulatory capital requirements and the profitability of the business.
- Credit risk – all about the risks associated primarily with lending money to personal and business customers.
- Operational risk – risks that are associated with our processes, people and systems.
- Conduct risk – the risks associated with delivering the banking experiences our customers want and deserve.
Every risk that we face in TSB sits within one of these four categories and teams. It helps us keep things simple and organise our risk governance, our risk reporting and even TSB’s policies.