RBS 2010 Annual Report Download - page 13

Our business and our strategy
Our approach to business
Risk
We understand
and manage the risks
we are taking
We identify and manage
the level of risk we are
prepared to take
Security
We operate in a
secure environment
We protect access to our
premises, systems and data
We operate our processes,
systems and controls
to minimise loss from
fraud or error
Finances
We manage our
finances carefully
We use the Group’s capital
and resources efficiently
We account for and report
our transactions properly
11RBS Group 2010
Standalone strength
Restoring the Bank to standalone strength is
crucial. The first part of the challenge is fixing
the problems of the past. We took a large step
towards this goal in 2009, with significant
improvements on both capital and liquidity. We
made further progress in 2010. The second
part of the challenge is to make RBS safer for
the future. To achieve this, we launched a new
vision for RBS Risk Management in 2010. That
vision is about adopting a more holistic
approach towards risk – across the business,
the risk function and audit – to create a safe,
sustainable and valuable bank for our
customers, staff and shareholders.
Sustainable value
Of our three goals, building the sustainable
value for all shareholders will inevitably take
the most time to deliver fully. We have a strong
foundation in our core businesses, which
generated a 13% return on equity in 2010,
just short of our 2013 target of greater than
15%. We are confident that our core businesses
will generate strong value both in their own right
and as a cohesive whole, given cross-business
synergies and the balance they bring.
We outline how they are each performing
against their own targets, and together to deliver
our Strategic Plan, on pages 12-15.
Rebuilding sustainable value will enable the UK
Government to sell its holding profitably over
time. We are acutely aware of our responsibility
to repay the support we’ve received from the
UK taxpayer. By successfully implementing our
Strategic Plan, we will achieve the business
success needed to attract new investors.
How we do business
We deliver products and services to
millions of customers around the world.
So it is important that we are consistent
in the way we do business – from how
we manage our risks, to how we treat both
our customers and our employees.
To achieve this, we have made six statements
that describe how we do business. These
relate to: our customers, our people, our
reputation, the security of our environment,
the risks we take, and our finances.