Rabobank is rolling out a full range of risk management
products to its global Rural Retail (R&R) business, based
on the model successfully developed by GFM's Treasury
business and the Dutch member banks.
Clear governance
GFM's Corporate Treasury Advisory Retail
has a very clear and ambitious mission
for 2011to offer Rabobank clients risk
management products and services they
need and understand, no matter where
they are or where those products originate.
That in itself will be a major selling point
for Rabobank in fiercely competitive
markets. But as Global Head of the depart-
ment, Marcel van Doremaele, explains, what
makes Rabobank's Treasury offering truly
different is the emphasison building cliënt
relationships based on teamwork between
local account managers and GFM's Treasury
specialists.
This combination of cliënt knowledge and
Treasury expertise means Rabobank can
identify and prioritise a ciient's risk, explain
the various hedging products and come
up with the ideal solution. 'The focus here
is on providing the cliënt with the best
fitting product, and making sure he or she
understands why this product can mitigate
the key risks." Van Doremaele says.
So how does the Dutch model actually
work and why has it been so successful?
The key is cooperation, Van Doremaele
says. Every region in the Netherlands has
a team of dedicated bankers, including
Treasury specialists, to serve the member
banks' corporate clients. André Dolsma,
Director Business Banking at Rabobank
Barneveld-Voorthuizen, explains: "The
Treasury specialists team up with the local
account managers to advise clients on the
best products to mitigate FX, commodity or
interest rate risks, based on their risk profile.
And recent market research has shown that
the member banks' corporate clients really
appreciate this service."
But what has also helped to make the
model such a success is that the allocation
of costs, risks and benefits have been pre-
agreed, Dolsma adds. And Rabobank has
invested a great deal in recent years in the
training and education of the local account
managers in the regional teams. "So local
account managers also understand the risks
their clients need to manage," Dolsma says.
Of course, most of Rabobank's country
operations are already selling hedging
products, but without a consistent gover
nance. So the plan is to lay down clear
roles and responsibilities, derived from the
governance model used in the Netherlands.
This is a model that Rabobank has worked
on and refined over the years. Now it's
almost a matter of copying this elsewhere,
taking into account local market practices
and legislation, says Ffem Mulders, Fiead
of Strategy, Governance Investment
Management R&R Banking.
But, again, the cooperation between account
managers and the Treasury specialists will be
key to the model's success in other countries.
issue 2<. RI WORLD
