Supervisory Board committees
Members:
M. Minderhoud, Chairman
S.L.J. Graafsma, Deputy Chairman
L. Koopmans
B. Bijvoet (until 14 June 2012)
L.N. Degle (from 15 September 2012)
W. Dekker (from 20 September 2012)
E.A.J, van de Merwe
A.J.A.M. Vermeer
The ACRC devoted frequent attention in 2012 to the European debt crisis and its impact on
Rabobank Group, the implementation of rules on 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 eurozone, their financial and economic impact, and the
economic outlook. The ACRC also thoroughly addressed efforts to shore up the risk
management cycle and stress-testing capabilities.
As part of the Supervisory Board's intention to nominate an external auditor for appointment,
the ACRC teamed up with the Executive Board to assess the performance of the incumbent
external auditor. The ACRC advised the Supervisory Board to re-appoint Ernst Young as the
external auditor of Rabobank Nederland for a period of three years (audit years 2013, 2014
and 2015).
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 2011, the budget for 2013, the funding mandate for 2013, developments in 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 2013.
The ACRC also educated itself extensively about the different sectors in which Rabobank has
a relatively large market share. In addition, the ACRC approved the Compliance Charter.
The ACRC issued a positive opinion to the Supervisory Board on the Compliance Charter.
The Audit Charter was adjusted slightly and approved by the ACRC. The theme of Treating
Customers Fairly (TCF) was also addressed several times. The Supervisory Board received
regular updates in 2012 of the status of the implementation of SEPA, the new European
payment standard, in the processes and systems of Rabobank.
The ACRC helped prepare the Supervisory Board in the process of approving the amended
Risk Appetite Paper. In addition, the ACRC discussed the interim reports of Group Compliance,
also addressing the compliance function at local Rabobanks, subsidiaries and foreign
branches, compliance with Customer Due Diligence rules, and management of compliance
risks. In 2012, the ACRC talked at length about the impact of national and international
legislation, including FATCA, Dodd-Frank/Volcker, MiFID and EMIR, on Rabobank Group.
The ACRC discussed the follow-up to the findings of an earlier mortgage investigation by the
Netherlands Authority for the Financial Markets (AFM), the follow-up to an earlier customer
integrity investigation by the Dutch Central Bank (DNB), and the outcome of stress tests.
The ACRC approved the Rabobank Group Audit Plans 2013 of both the internal and the
external auditors, and addressed the quarterly reports of the internal auditor (Group Audit).
As part of the annual procedure, the ACRC also met with the external auditor and Group Audit
without the Executive Board being present.The performance of the ACRC was assessed in the
context of the full-scope and independent assessment of the performance of the Supervisory
Board and its committees for 2012.
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 and risk management. In the year under review, the
ACRC helped the Supervisory Board prepare for its decision-making on the Annual Report
2011, the Interim Report 2012 and the budget for 2013. 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 allowance for loan losses, the effectiveness
of the internal control and risk management systems, credit, market and operational risk,
concentration risk, systemic risk, country risk, new ratings and their implications for Rabobank,
fee policy and funding options.
104 Annual Report 2012 Rabobank Group
