The performance of the ACRC was part of the comprehensive and independent assessment
of the Supervisory Board and various committees of this Board that was carried out for 2013.
A self-assessment of the performance of the Audit Committee and the Risk Committee will be
carried out in the course of 2014.
Members:
M. Minderhoud (Chairman until
29 October 2013)
S.L.J. Graafsma, Chairman (Deputy
Chairman until 29 October 2013)
L.N. Degle
W. Dekker
C.H. van Dalen (from 25September2013)
E.A.J, van de Merwe
A.J.A.M. Vermeer
I.P. Asscher-Vonk, observer
Audit Committee (from September2013)
This Committee helps the Supervisory Board prepare for its decision-making in relation to its
supervision of the Executive Board on matters that are part mainly of the compliance function,
the internal audit function and the external auditor: the internal risk management and control
systems, the internal and external codes of conduct, the provision of financial information and
compliance with and follow-up of recommendations and findings of the internal auditor and
the external auditor, as well as compliance with legislation and regulations.
From September 2013, the Audit Committee considered in further detail the audit and
compliance documents and topics as described for the ACRC above. In addition, the Audit
Committee closely focused on the Asset Quality Review for commercial real estate, the design
and operation of the compliance organisation of RNA in California, the progress on several
points for follow-up in the management letter, the compliance implementation plan, progress
reports on elements of Vision 2016, the half-yearly performance report of Rabobank
International and preparations for the mandatory rotation of the external auditor.
The Audit Committee has reviewed the budget application 2014 from Rabobank Nederland for
Support for Member Banks in relation to Vision 2016 and Transition Rabobank Nederland, as
part of which it focused on cost trends, FTE reductions and the development of the programme
portfolio. The Audit Committee also discussed Rabobank Group's budget for 2014, with a
particular focus on the development of the core tier 1 ratio. The Audit Committee advised
favourably on the group budget following the Executive Board's undertaking to discuss
potential strategic choices early in 2014 with a view to achieving the financial targets for 2014.
The Audit Committee changed the Audit Rabobank Group Charter in line with the Basel
document 'The internal audit function in banks'and approved the Audit Plan Rabobank Group
2014. As part of the annual procedure, the Audit Committee also met with the external auditor
and Group Audit without the Executive Board being present.
The internal auditor, Audit Rabobank Group, has sufficient resources in the judgement of the
Supervisory Board to adequately perform its duties.
Members:
E.A.J, van de Merwe, Chairman
L.N. Degle, Deputy Chairman
W. Dekker
S.L.J. Graafsma
M. Minderhoud (until29October2013)
R.Teerlink (from 25 September2013)
C.P. Veerman
Risk Committee (from September 2013)
The Risk Committee helps the Supervisory Board prepare for its decision-making in relation to
its supervision of the Executive Board with regard to its risk policy, risk management and the
associated risk profile. This includes the operation of the product approval process and the risks
relating to the remuneration system of Rabobank Group. The Risk Committee also discusses the
financing structure, the policy on capital adequacy and capital allocation, the liquidity and
funding in the short and long terms in the light of the group strategy and the defined risk policy.
From September 2013, the Risk Committee considered in further detail the risk-related
documents and themes as described above for the ACRC. In addition, the Risk Committee
focused on Rabobank Certificates and Rabobank Member Certificates, the strategic options for
Bank BGZ, the restructuring of ACCBank in Ireland, the growth strategy for Indonesia, the
assessment of acquisitions and participating interests. Furthermore, it discussed the monthly
results and the risk sections in the memorandum on the course of affairs, as well as the periodic
credit risk reports.The Risk Committee focused in detail on the DNB stress test, partly by
reference to Rabobank's own stress tests, on the quality of the mortgage portfolio of Rabobank
and on the preparations for the balance sheet assessment by the European Central Bank.
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Report of the Supervisory Board of Rabobank Nederland