This document discusses risk management at Centrica and how the different parts fit together. It provides an overview of Centrica's governance, risk and control framework which includes the board of directors and various subcommittees that provide oversight of strategic, operational, and compliance risks. It also outlines Centrica's governance structure showing the relationships between the board, audit committee, and other risk management committees. Finally, it briefly describes Centrica's risk management process and organizational chart for business risk.

1. Centrica Risk Forum How does Risk Management fit together within Centrica? 14 December 2010

3. Centrica’s Governance, Risk and Control Framework Governance Framework Business Performance Reporting (Information and Monitoring) Control Environment Strategic Operational Compliance Board & Sub Committees Control Activities Risk appetite Policies & Procedures Delegated Authority People & Values Risk Management Strategic Planning Internal Audit

4. Centrica’s Governance Structure Board CEC Audit Committee Nomination Committee CR Committee Disclosure Committee Remun. Committee Group Risk Management Committee Controls Board IS Leadership Team Group Regulatory Compliance Centrica Policy Group Group Financial Risk Management Committee CSL Board European Financial Risk Management Committee DE Financial Risk Management Committee European Energy Margin Committee DE Downstream Margin Committee / Upstream Hedge Committee QPR Info Risk Controls Group Investment Sub Committee Group Storage Fin. Risk Management Committee HR Leadership Team GP&SM Governance Group HSE Committee Controls Steering Group CSL BRMC DE Audit (1) Committee CC / CE / OBG BRMC’s CCLT CELT BGX DE Exec DE BRMC Key: 1. Currently being established following Audit Committee request 2. Separate arrangements exist for the oversight of regulated entities D M P D M P M P M D M P M M P M P M P D M P D M P M M P M P M P D M P D M P D M P M P M P M M M M M P D M P Policy Setting role D Decision making / escalation role M Monitoring role M

5. Governance Arrangements for Risk & Control Board CEC Audit Committee Group Risk Management Committee Group Financial Risk Management Committee CSL Fin. Risk Management Committee CSL BRMC BUSINESS RISK DE BRMC FINANCIAL RISK CE BRMC BG BRMC CCC BRMC DE FRMC Centrica Controls Board Controls Steering Group Information Risk Steering Group CRC HSE European FRMC

6. Risk Registers – How the Information Flows Up

7. Risk Management Process

8. Group Business Risk Organisational Chart