'From time to time, we need to sit
in our helicopter in order to have
a proper overview of Rabobank
International (Rl),' says Hans van
der Linden, Chief Audit Executive
of Rabobank Group. 'By taking
this broad, overview approach, we
identify and analyse the key risks
that might threaten the continuity
of the business.'
Defence mechanism
The Word
These key risks, as he calls them, are usually in the more complex
areas of the bank. Rl is a dynamic and very ambitious organisation.
An important part of the profit comes from potentially high-risk
business, often a long way from Utrecht. 'You can't manage these risks
throughfurthercentralisation of controls and moreformal procedures,
but rather through individual team efforts,' Van der Linden explains.
Rabobank has three lines of defence against risk. The first, which
is essential for being - and staying - in control, is a management
team that is aware of risks and organises its own checks and bal-
ances. 'Although ARG's (Audit Rabobank Group) auditors carry out
hundreds of audits every year, we certainly can't audit every area of
Rl every two weeks,' Van der Linden says. This means local manage
ment needs to organise it's own operational control in our absence.'
The second line of defence is the Control Risk department, led by
CFRO Harry de Roo. 'Harry has a very important two-way role,' states
