4. Risk management
4.7 Risk approach
Inhoudsopgave Bestuursverslag Corporate governance Jaarrekening Rabobank Groep Jaarrekening Rabobank Pillar 3
edtf2 Rabobank Group operates a prudent approach to risk
with rigorous management controls to keep the bank
safe, support the sustainable risk strategy and minimize losses
within the risk appetite. The Group has installed a strong risk
function and maintains a robust risk management framework to
identify and escalate emerging risks and to take decisions based
on a conscious and careful risk-return trade-off in line with the
risk strategy that should remain within the risk appetite.
Risk strategy
edtf6 Rabobank's risk strategy supports the management in
the realisation of the business strategy by defining
boundaries within which the bank must operate. An important
starting point for the risk strategy is that running risks is
an inherent part of banking. Without risks (profitable) banking
activities are not possible.Therefore, it is natural to not only
accept a certain degree of risk but also to pursue it.The risk
strategy focuses on:
a healthy risk-return ratio;
protection of profit and growth in profits - Rabobank's
business strategy is based on its cooperative background, and
thus maximisation of profit is not an objective;
retention of solid balance sheet ratios: solid balance sheet
ratios are essential to ensure continuity in the provision
of services to customers on sustainable and favourable
conditions, and
protection of Rabobank's identity and reputation: Rabobank
wants stakeholders to continue to have confidence in
the bank.
The mission of the Risk Management department is to ensure
the financial stability and continuity of Rabobank by monitoring
its risk profile.The Risk Management department ensures
that risk management is implemented correctly, in line with
legislation and best practices in the market.
Risk culture
Risk is everybody's business. Rabobank expects all employees
to contribute to a sound risk culture focussing on long term
relationships with customers and placing their interest
first. Employees are explicitly expected to deal responsibly
with risks and dilemmas, to carefully consider the interests
of stakeholders, to always be honest and reliable and take
responsibility for their actions. Each individual employee
contributes to the risk profile of Rabobank and the way in
which risks are managed. Desirable behaviour is encouraged
and undesirable behaviour is corrected. An important
baseline is to create an environment in which risks are openly
discussed and where openness exists regarding dilemmas that
arise in our work.Tunnel vision needs to be avoided in the
perception of risk. It is vital, to learn from mistakes and to limit
repetition by removing the causes and by sharing experiences.
Risk management activities actively keep risks within the
established risk appetite and support assessment of potential
consequences of choices, careful consideration of risk and/
return trade-offs and appropriate measures based on up-to-
date risk analyses.
The risk culture is further defined in the codes for various
themes such as integrity, credit risk, information security,
privacy and sustainability. Risk culture is further supported by:
A structured organisational change in the 'Culture Collective'
movement, in which Rabobank employees discuss their
contribution to the organisational change and their individual
behaviour, the focus on customers and strategic objectives,
including in particular risk and compliance. In addition to
that Rabobank adheres not only to the Banker's Oath in
the Netherlands but also introduced an international Values
Week to direct attention on core values and accompanying
prudential behaviour. All employees are challenged
worldwide to engage in dialogues about the bank's values
and what they mean in their day-to-day work.
Surveys among employees addressing risk and compliance
issues culture topics (such as tone from the top, openness to
challenge willingness to speak up) and areas of improvement
for both the organisation and the employees.
Training offered across the organisation on risk-related issues,
such as informing customers with respect to the risks they
take, integrity, privacy and information security.The subjects
and methods are continually under development to keep
322 Rabobank Jaarverslag 2015
