RBS 2010 Annual Report Download - page 41

39RBS Group 2010
Divisional review
Business Services and Central Functions
Bruce Van Saun, Group
Finance Director
MFor biographies
see pages 226-229
We provide business continuity support, enabling the Group to continue
to deliver key products and services in the event of disruption.
Investing for the future
Business Services offers a range of scale benefits, including
purchasing, and specialist knowledge for the Group. Our focus is on
improving on these services, whilst managing risk. Together, the actions
we took in 2010, and will continue to implement in future years, are
designed to make the Group more efficient and enable it to provide a
better service to our customers.
Central Functions
RBS Risk Management
RBS Risk Management is responsible for developing and embedding
risk policy, measurement and frameworks to ensure that risk is identified,
managed and controlled across the Group. The management of risk is a
fundamental activity performed throughout all the Group's Businesses.
It underpins the Group's performance and future success. It is critically
important that the adequacy and effectiveness of our risk management
processes are of the highest standard and subject to continuous review
and enhancement.
Finance
Finance is responsible for the external reporting of the Group’s
performance and financial position, including regulatory and central
bank reporting. As part of our mission to rebuild investor confidence and
trust, we have greatly improved the quality and transparency of RBS’s
external reporting, and we provide financial information to the market
quarterly. Finance has a critical role in partnering with our divisions to
monitor performance against the Group Strategic Plan, and is helping
the business achieve our strategic aims using enhanced forecasting
tools and thoughtful analytics.
The Treasury function has focused on driving improvements to the
Group’s liquidity, funding and capital position. In 2010, Finance has
played a central role in the initiative to dispose of EU-mandated
divestments as well as assessing the implications of changes in the
regulatory environment.
Finance’s key objectives include a transformation programme to improve
the efficiency of the function over the next three years. The programme
envisages the creation of a world class finance function through a
number of initiatives including substantial investment in finance and risk
systems infrastructure.
Human Resources
A new leadership capability framework has been launched to ensure
our leaders are assessed and developed against behaviours that
support the delivery of our strategic plans and our emerging culture.
The behaviours are assessed in a 360-degree feedback tool which is
an integral part of how we review our Executives’ performance. The
behaviours we focus on include: Strategic Progress, Business Delivery
& Financial Performance, Customers' Expectations, Risk, Efficiency
and Control, People Management, and Personal Skills. The outputs of
360-degree feedback help to prepare personal development plans
and inform leadership development priorities.
Group Strategy and Group Corporate Finance
Our Group Strategy and Corporate Finance team supports the Chief
Executive, Chief Financial Officer and the Executive Committee in the
development of the Group’s strategy. Its objective is to ensure that the
Group has the right portfolio of businesses, active in the right markets,
supported by the appropriate allocation of capital and other resources.
The team plays a key role in the Group’s disposal activity.
Group Legal, Secretariat and Regulatory Affairs & Compliance
Our Group Legal, Secretariat and Regulatory Affairs & Compliance
functions play a vital role in setting a framework within which the Group
can deliver long term sustainable returns. The team works in partnership
with the businesses it supports. It adopts a commercial approach but
retains its independence and professional judgement in order to drive a
culture of compliance and good governance designed to protect the
Group's franchise.
RBS Communications
RBS Communications manages our relationships with external
stakeholders and makes sure we keep our employees informed about
developments in the business. RBS wants to be open to stakeholders
and during the year RBS Communications helped elected officials,
commentators and others gain a better understanding of our business
and our plans.
Elaine Arden, Group Human
Resources Director