Corporate governance

Prior to the operational commencement of the business on 1 November 2014, we successfully established our Board and its Committees with their own terms of reference. The terms of reference for each of our Committees can be found on our website and are reviewed annually.

Audit Committee

The Audit Committee is governed by the principles of the Corporate Governance Code. We have reflected these principles in the Audit Committee’s terms of reference which can be found on our website. The Committee’s role is to review, monitor and make recommendations to the Board relating to the going-concern nature of the Bank, the integrity of financial reporting, the financial statements and any issues and judgements they contain, the adequacy and effectiveness of the internal and external controls and overseeing the relationship with the Bank’s external auditor. The Committee also has oversight of the Internal Audit and Audit Planning process of the Bank

Remuneration Committee

The Committee’s role is to set the remuneration policy for all Executive Directors, the Chairman and all other senior management, including pension rights and any compensation payments, and to set the terms of the Long and Short-Term Incentive Plans and any bonus schemes the Company may operate.

During the year the Committee considered the structure of all compensation payments to Directors and senior management, the setting-up of the Long and Short-Term Incentive Plans of the Company and the performance evaluation of senior management.

Risk Committee

The Committee’s role is to advise the Board on the Company’s risk appetite and performance against risk appetite and oversee and advise the Board on the risk exposures and future risk strategy. In particular the Committee evaluates the Company’s governance, risk and internal controls, the procedures to guard against fraud and bribery and corruption safeguards. During the year the Committee has considered the policies which apply to the British Business Bank Group, risk appetite and risks applicable to the Group, and the compliance framework.

 Nomination Committee

The committee considers the nominations of potential Directors and makes recommendations to the Board.

All appointments to the Board are based on merit and on the experience and skills required, with due regard to the benefits of diversity.