HSBC 2012 Annual Report Download - page 18

HSBC HOLDINGS PLC
Report of the Directors: Overview (continued)
Business and operating models / Strategic direction
16
within the risk appetite set by the Board. The Board,
through the GMB, works to ensure that there are
sufficient cash resources to pay dividends to
shareholders, interest to bondholders, expenses and
taxes.
HSBC Holdings does not provide core funding
to any subsidiary, nor is a lender of last resort and
does not carry out any banking business in its
own right. HSBC has a legal entity-based Group
structure, with subsidiaries operating under their
own boards of directors as separately capitalised,
ring-fenced entities, implementing Group strategy
and delivering Group products and services, in most
cases in the country or territory in which they are
domiciled.
Global businesses
Our four global businesses are responsible for
developing, implementing and managing their
business propositions consistently across the Group,
focusing on profitability and efficiency. They set
their strategies within the confines of the Group
strategy in liaison with the geographical regions,
are responsible for issuing planning guidance
regarding their businesses, are accountable for
their profit and loss performance, and manage their
headcount.
The main business activities of our global
businesses are summarised below. Further details
are provided on page 60.
Main business activities by global business
RBWM CMB GB&M GPB
•Deposits
•Account services
•Deposits
•Payments and cash
management
•Deposits
•Payments and cash
management
•Balance sheet
management
•Deposits
•Account services
Global
businesses
Liability
driven
•Credit and lending •Credit and lending
•Trade and receivables
finance
•Credit and lending
•Asset and trade finance
•Credit and lending
Asset
driven
•Asset management
•Wealth solutions and
financial planning
•Broking
12
•Life insurance
manufacturing
•Commercial insurance
and investments
•Corporate finance
13
•Markets
14
•Securities services
•Asset management
15
•Financial advisory
16
•Broking
12
•Corporate finance (via
GB&M)
13
•Alternative investments
17
Fee driven
and other
For footnotes, see page 120.
Geographical regions
The geographical regions share responsibility for
executing the strategies set by the global businesses.
They represent the Group to clients, regulators,
employee groups and other stakeholders; allocate
capital; manage risk appetite, liquidity and funding
by legal entity; and are accountable for profit and
loss performance in line with global business plans.
Within the geographical regions, the Group is
structured as a network of regional banks and locally
incorporated regulated banking entities. Each bank is
separately capitalised in accordance with applicable
prudential requirements and is required to consider
its risk and maintain a capital buffer consistent with
the Group’s risk appetite for the relevant country
or region. The banking entities manage their own
funding and liquidity within parameters set centrally.
Global functions
Our global functions are Communications, Company
Secretaries, Corporate Sustainability, Finance,
Human Resources, Internal Audit, Legal, Risk
(including Compliance), Strategy and Planning,
Marketing, and HSBC Technology and Services,
our global service delivery organisation. The
global functions establish and manage all policies,
processes and delivery platforms relevant to their
activities, are fully accountable for their costs
globally and are responsible for managing their
headcount.