NewDay’s approach to risk management is articulated in our overarching Risk Management Framework that covers financial control, credit risk, liquidity risk, conduct risk and operational risk.

The Framework has been developed in line with the evolving complexity of the business and is scalable for future growth. It is delivered via our three lines of defence operating model which ensures:

  • appropriate ownership within the business (first line of defence);
  • independent oversight and assurance provided to the Executive Committee and the Board by the Enterprise Risk Function (second line of defence); and
  • additional assurance provided to the Board by internal audit (third line of defence)

Our Risk Management Framework is embedded within our corporate governance structure and has a strong emphasis on effective oversight, challenge and control. We set risk appetite thresholds to ensure that the business strategy is delivered in a sustainable and responsible way.

The Board is ultimately responsible for the setting of risk appetite and oversight of the Risk Management Framework. It delegates the monitoring and oversight responsibility to the Board Risk Committee. The Chief Executive Officer, supported by the Executive Committee, is responsible for the day to day management of the business and has delegated authority from the Board to make decisions on risk matters within our agreed framework.