Members
M. Minderhoud, Chairman
L. Koopmans
B. Bijvoet
S.LJ. Graafsma
Supervisory Board committees
Audit, Compliance Risk Committee
The Audit, Compliance Risk Committee (ACRC) helps the Supervisory Board prepare for
its decision-making in relation to its supervision of the Executive Board's actions involving
financial affairs, compliance-related issues, risk management and ICT.
(from 17 June 2010)
A.W. Veenman (to 17June 2010)
C.P. Veerman
AJ.A.M. Vermeer
(from 29 September 2010)
E.A.J. van de Merwe
In the year under review, the ACRC helped the Supervisory Board prepare for its decision
making on the Annual Report 2009, the Interim Report 2010 and the budget for 2011
Particular focus was placed on issues such as developments in earnings at Rabobank Group,
solvency and liquidity developments at Rabobank Group, accounting for impairments, the
effectiveness of the internal risk management and control systems, concentration risk and
systemic risk, country risk, developments in credit rating, debit and credit interest rate policy,
and funding options.The ACRC devoted special attention to the requirements for capital
adequacy and liquidity announced by the Basel Committee (Basel III) and their ramifications
for Rabobank Group's strategy. The ACRC educated itself extensively about developments in
financial markets and in the euro zone, their financial and economic impact, and the economic
outlook. The Committee also thoroughly addressed the lessons learned from the financial crisis,
which, at Rabobank, resulted in such measures as tightening governance in crisis situations
and strengthening the risk management cycle and the stress-testing options.The ACRC also
considered a number of developments connected with the situation on the financial markets,
such as changes in the financial sector and oversight of this sector. Other issues discussed by
the ACRC included the monthly figures and quarterly reports on financial developments at
Rabobank Group, the management letter for 2009, the budget for 2011the funding mandate
for 2010 and 2011capital adequacy at Rabobank International and at subsidiaries, and the
reports on the quality of financial reporting controls, the Long-term Policy Agenda for Local
Banks 2011-2012, as well as the Annual Plan and the Rabobank Nederland Budget for
Supporting Member Banks 2011
The ACRC helped prepare the Supervisory Board in the process of approving the Risk
Appetite Document, the Risk Charter, the Lending Policy Framework and the Product Approval
Process. In addition, the ACRC discussed the interim report of Group Compliance and the
Rabobank Group Integrity and Safety Report. As part of the duty of care towards retail clients,
particular focus was placed on the further transposition of the principles of the Customer Care
programme into formula, product, risk and HR policy. The ACRC also considered the compliance
function at local Rabobanks, subsidiaries and offices abroad, the prevention of external fraud
as part of Customer Due Diligence, and management of compliance risks. The ACRC discusses
the management information about credit risk on a quarterly basis. The ACRC talked about
the outcome of the AFM mortgage survey, the annual risk assessment of the Dutch Central
Bank (DNB) of strategic, credit, operational and compliance risk, as well as the outcome of the
stress tests of European banks conducted by the CEBS.
The ACRC approved the Audit Plan Rabobank Group 2011 and discussed the quarterly
reports by Rabobank Group Audit, and met with the independent external auditor and Group
Audit as part of the annual procedure.
In accordance with its duties and responsibilities, the ACRC addressed the status of ICT
at Rabobank Group, developments in ICT and the increasing relevance of the quality of
Rabobank's ICT landscape to its strategic ambitions and excellence in client services.
The ACRC also considered the lessons learned from a not so successful IT project.
The ACRC was briefed on internal securitisation transactions and the policy for foreign
currency funding, as well as about the impact of accounting for pensions and a possible
change in accounting for leases on Rabobank Group.
The Chairman of the Supervisory Board and the Chairman of the ACRC on the one hand
and DNB on the other were in close contact about how the Supervisory Board interprets its
supervisory function. In a meeting about risk management with the Senior Supervisors Group
(a group of international governmental supervisors who represent central banks) in the autumn
of 2010, the Chairman of the Supervisory Board and the Chairman of the ACRC explained how
Rabobank weathered the financial crisis.
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Annual Report 2010 Rabobank Group
