Notwithstanding the moral and ethical declaration and the Code of Conduct, we need to
demonstrate in our day-to-day conduct in particular that we act in accordance with the spirit
of these principles. This is evaluated on an ongoing basis.
Continuing education
The members of the Executive Board take a number of half-day continuing education courses
every year. The continuing education curriculum includes relevant developments at Rabobank
and in the financial sector, corporate governance in general and that of the financial sector in
particular, the duty of care towards customers, integrity, risk management, financial reporting
and audits. Depending on the topic, the continuing education sessions are taught by both
internal and external experts. In 2011, the Executive Board educated itself about such topics
as developments involving Basel III, competition law and trends in world food prices.
In addition to the continuing education curriculum, newly appointed executive directors are
offered a tailor-made induction programme, within the context of which they talk to several
internal and external experts, and make working visits.
Supervisory Board
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. A training
programme is set up for supervisory directors annually. The selection of topics takes account
of current developments and the expertise required within the Supervisory Board. In 2011,
sessions were organised on such topics as developments involving Basel III, competition law
and trends in world food prices. As part of the continuing education programme, the members
of the Supervisory Board also pay working visits. In the spring of 2011the Supervisory Board
visited a number of Rabobank branches in the United States to review their operations and the
current state of affairs.
Individual profiles are 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.
Furthermore, every year the Supervisory Board evaluates the performance of the Supervisory
Board as a whole and that of its individual members. Further information on the activities of
the Supervisory Board in 2011 can be found in the report of the Supervisory Board contained
elsewhere in this Annual Report.
Risk management
Another central theme of the Dutch 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. In stepping up risk management in 2011a top-down risk
assessment was performed that included a more integrated analysis of the various risk
categories. In addition, the different group entities further fleshed out their own risk appetite.
A separate section on risk management can be found elsewhere in this annual report.
Risk appetite
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. The Risk
Appetite Paper that we drafted 2010 was in compliance with the provisions of the Banking
Code. This Paper was adopted by the Executive Board and approved by the Supervisory Board.
Rabobank's strategy was taken as a starting point when defining the risk appetite. 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. Following on from the
risk appetite at group level, in 2011 separate risk appetite papers were prepared for all material
group operations.
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Annual Report 2011 Rabobank Group
