the extent to which the Supervisory Board, its committees and its members comply with the
chosen profile, and the composition and the availability of the required competencies of the
Supervisory Board and of the separate committees. The range of competencies represented
is supplemented through new appointments as appropriate. The Audit, Compliance Risk
Committee also reviewed its performance in 2011, following which some improvements were
introduced in its procedures.
In the Supervisory Board's opinion, its committees discharged their duties promptly and
efficiently in the year under review, thereby contributing significantly to the embodiment of
the supervisory role of the Supervisory Board.
Strong performance
The Supervisory Board is pleased with they way in which Rabobank Group managed to counter
the ramifications of the challenging financial and economic conditions. The members of the
Supervisory Board note that the strength of the cooperative structure once again proved its
worth in 2011 and would like to take this opportunity to thank management and all
employees for their efforts and commitment in the year under review.
Supervisory Board committees
Members: Audit, Compliance Risk Committee
m. Minderhoud, chairman The Audit, Compliance Risk Committee (ACRC) helps the Supervisory Board prepare for its
s.L.j. Graafsma, Deputy chairman decision-making in relation to its supervision of the Executive Board's actions involving
l. Koopmans financial affairs, compliance-related issues and risk management.
B. Bijvoet
E.A.J. van de Merwe In the year under review, the ACRC helped the Supervisory Board prepare for its decision-
A.J.A.M. vermeer making on the Annual Report 2010, the Interim Report 2011 and the budget for 2012.
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 control systems, concentration risk and systemic risk, country risk,
new ratings and their implications for Rabobank, fee policy and funding options.
The ACRC devoted frequent attention in 2011 to the European debt crisis and its impact on
Rabobank Group, developments in capital adequacy and liquidity requirements announced by
the Basel Committee (Basel III) and their consequences for Rabobank Group's strategy. The
ACRC educated itself extensively and on an ongoing basis about developments in the 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 and
efforts to strengthen the risk management cycle and stress-testing capabilities. 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. Furthermore, the ACRC
familiarised itself thoroughly with the design and effectiveness of Rabobank Group's
operational risk management practices.
Other issues covered by the ACRC included the quarterly reports on financial developments at
Rabobank Group, the management letter for 2010, the budget for 2012, the funding mandate
for 2012, the Net Stable Funding Ratio and capital adequacy at the different group entities, as
well as the Annual Plan and the Rabobank Nederland Budget for Supporting Member Banks
2012. The ACRC also educated itself extensively about the different sectors in which Rabobank
has a relatively large market share, and about the effects of the EFHEC crisis. The ACRC and the
Executive Board also discussed the effectiveness of Customer Due Diligence, as well as
addressing the theme of Focus on the Customer on several occasions.
The ACRC helped prepare the Supervisory Board in the process of approving the Risk Appetite
Paper and the Risk Charter. The ACRC also discussed the six-monthly reports of Group
Compliance, addressing the compliance function at local Rabobanks, subsidiaries and foreign
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Report of the Supervisory Board of Rabobank Nederland
