Rabobank: customer interests and risk management
as guiding principles
Code. The composition and performance of the supervisory board of De Lage Landen reflects
the fact that De Lage Landen is a wholly owned subsidiary of Rabobank Nederland and has
been incorporated into the group-wide management structure referred to above.
The way in which Rabobank generally deals with the subject matter covered in the Banking
Code is described below, after which consideration is given to the specific steps taken by
Rabobank in relation to the Banking Code in 2009 and 2010.
Focusing on the customer
The Rabobank Group Code of Conduct and Rabobank's ambition statement enshrine the
principle of focusing on customers and treating them with due care. This principle is expressed
in the products and services that Rabobank offers. Focusing on the interests of customers is
nothing new for Rabobank.This objective has its roots in Rabobank's cooperative structure,
in which clients can become members of the cooperative and influence the way in which the
bank functions. Serving the interests of members, i.e. the bank's clients, was in fact the main
guiding principle at the time Rabobank was founded, more than 110 years ago.
Rabobank has had a Product Approval Committee for some time.This committee checks the
quality of products and assesses whether the information provided to customers is easy-to-
understand, balanced and complete. Moreover, products and services must reflect the needs
of customers. The existing product offering is periodically examined to determine whether it
still fulfils current requirements.
The quality of services provided is reported on frequently in management reports and
compliance reports. The employees of the local Rabobanks and Rabobank Nederland aim
to provide top-quality, well-considered services.The performance targets agreed with
these employees are balanced, and the performance management system used means that
variable pay is relatively moderated. Focusing on the customer is a core competency that
employees need, and this is reflected in the policy for hiring new employees in aspects such
as communication with the labour market and the posting of vacancies. The induction
programmes for new employees also pay plenty of attention to Rabobank's core values of
respect, integrity, professionalism and sustainability.
Clearly, good processes and expert employees are important. Ensuring the interests of
customers really are paramount also requires an appropriate business culture. Rabobank
pays a great deal of attention to this matter, for example through its successful Customer
Care programme, which ran from 2008 to 2010. The aim of this programme was to make
management and employees aware of the Duty of Care policy framework, which was
established in 2007. Following the completion of this programme, the embedding of this
theme within the organisation has been monitored and supported by a coordination group.
Thanks to the culture and procedures described above, Rabobank invariably scores highly
when it comes to customer satisfaction, as reflected in the outcomes of periodic internal
and external surveys.
Risk management
Another central theme of the Banking Code is risk management. Rabobank Group's
conservative risk profile stems from the sound objectives of stability and solidity that Rabobank
has pursued for many years. Moreover, Rabobank was also found to have controlled risks
effectively during the recent period of economic and financial turmoil, and it is considered to
set a good example for the sector. A separate section on risk management can be found
elsewhere in this annual report.
Governance
The Supervisory Board of Rabobank Nederland has a diverse composition. New members of the
Supervisory Board follow an induction programme to prepare them for their role. Furthermore,
every year the Supervisory Board evaluates its own performance and that of its individual
members. Further information on the activities of the Supervisory Board in 2010 can be found
in the report of the Supervisory Board contained elsewhere in this Annual Report.
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Banking code