4. Risk management 4.7 Risk Approach Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 edtf 2 Rabobank Group operates a prudent approach to risk with rigorous management controls to keep the bank safe, support the sustainable risk strategy and minimise losses within 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 risk appetite. Risk strategy Rabobank's risk strategy supports management in the realisation of the business strategy by defining boundaries within which the business must operate. An important starting point for the risk strategy is that banking is about taking risks. Each time business opportunities are discussed and decisions are taken, risks are assessed against expected return. Without taking risks no (profitable) banking activities are possible. Therefore, not only accepting but also striving for a certain degree of risk is a necessity. Rabobank focuses its risk strategy on the following goals: Support business in delivering excellent and appropriate customer focus. Protect profit and profit growth: Rabobank's business strategy is strongly related to its cooperative roots, achieving a healthy profit generation and at the same time realising a high standard in serving its members, clients and society. Maintain a solid balance sheet: Sound balance sheet ratios are essential to ensuring continuity in servicing our customers under sustainable and favourable conditions. Protect identity and reputation: A solid reputation is essential to maintaining stakeholders'fundamental trust in the bank. Make healthy risk-return decisions: Make transparent choices related to where capital and resources can be used most efficiently or appropriately with respect to sectors or concentrations. These goals are strongly interwoven and fully dependent on maintaining sound governance and a strong risk culture throughout the organisation. Delivery of long-term customer value requires a solid balance sheet, minimalising funding costs and supporting the bank's profitability and reputation. In return, maintaining a solid balance sheet requires a healthy profitability and a sound reputation. Risk culture Risk is everybody's business. A sound risk culture is the basis for good risk management. Rabobank expects all employees to contribute to a sound risk culture focusing on long term relationships with, and in the best interest of, our customers. Employees are 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 and group bias needs to be avoided in the perception of risk. It is vital, to learn from mistakes and to avoid 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/return trade-offs and appropriate measures based on up-to date risk analyses. Rabobank's risk principles provide additional guidance regarding risk behaviour to our core values: integrity, respect, professionalism, sustainability and our aim to build long term client relations while always acting in our client's interest. The risk principles serve as a compass to guide our actions and provide standards for the desired behaviour within Rabobank. This is complemented with risk awareness and compliance training programmes for all employees. Risk Appetite Rabobank's risk strategy is embedded in a number of strategic risk statements directly linked to the Strategic Framework 2016-2020. These statements define the boundaries of the risk appetite within which we must operate. The Risk Appetite Statement (RAS) further specifies the Strategic Risk Statements and define the levels and types of risk Rabobank is willing to accept in order to achieve its business objectives. It articulates Rabobank's desired level of overall risk exposure 313 4. Risk management

Rabobank Bronnenarchief

Jaarverslagen Rabobank | 2016 | | pagina 314