Risk appetite Governance: Supervisory Board Continuing education To supplement the existing focus on refresher courses for members of the Supervisory Board, a new continuing education programme specifically designed for this group was launched in 2010. A training programme was set up for this purpose in close consultation with the Supervisory Board. The selection of topics takes account of current developments and the expertise required within the Supervisory Board. Sessions on ICT policy and developments, developments in the food and agri sector, and the future of the international financial sector were held in 2010. Knowledge sessions on developments related to Basel III and risk management are planned for 2011As part of the continuing education programme, the members of the Supervisory Board pay working visits. In the spring of 2011, the Supervisory Board will pay a working visit to a number of Rabobank offices in the United States to review operations and the current state of affairs. Individual job profiles Starting in 2010, individual job profiles will be drawn up for all vacancies on the Supervisory Board, including openings for the position of Chairman. The profiles describe the integrity, expertise and availability required of the relevant Supervisory Board member. In addition, the rules of procedure for the Supervisory Board and its committees were brought into line with the Banking Code in 2010. The Supervisory Board decided to broaden the responsibilities of the existing Audit Compliance Committee, which has had the effect of further increasing the committee's focus on risk-related matters. In line with this, in 2010 the name of the committee was changed to the Audit, Compliance Risk Committee. The committee also changed its procedures so that all risk-related matters are dealt with in a more systematic manner. As a consequence, both the Audit, Compliance Risk Committee and the Supervisory Board will pay more attention to risk management in future. The performance of the Supervisory Board and all of its committees is reviewed once a year. Risk management In 2010, several procedures were tightened up and a number of internal rules on risk management were amended in order to ensure full compliance with the risk management provisions of the Banking Code. The Executive Board of Rabobank Nederland receives periodic reports, enabling members to keep a close eye on developments related to risk. These reports cover the group-wide risk profile and pay attention to credit risk, market risk, interest rate risk, operational risk and the funding profile. This ensures that the Executive Board is made aware in good time of the material risks incurred by the bank. In 2010, Rabobank's policy on operational risk management was revised and improved. This policy covers both the management of frequently occurring incidents that result in small losses per incident (high-frequency/low-impact incidents) and the prevention of unspecified or rarely occurring incidents that have a major impact and lead to substantial losses per incident (low-frequency/high-impact incidents). Risk management takes place within the boundaries of risk that Rabobank is prepared to accept. Rabobank has formulated a specific policy on this risk appetite at group level. In 2010, a risk appetite document was drawn up that complies with the Banking Code. This document was adopted by the Executive Board and approved by the Supervisory Board. Rabobank's strategy was taken as a starting point when preparing the risk appetite document. Rabobank's risk appetite, which is linked to its core values is submitted to the Supervisory Board for approval once a year and also whenever any material changes occur. No such changes occurred during 2010. Product approval The product approval process was tightened up in 2010 to comply with the Banking Code. This involved establishing a product approval process at group level, replacing the old system under which the various group entities handled such matters independently. At the end of 93 Banking code

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Annual Reports Rabobank | 2010 | | pagina 94