Risk management organisation
Solid balance sheet ratios: these are essential for continuity in our client services.
This means a stable funding basis, strong liquidity buffers, compliance with internal and
external requirements for capital buffers and a comfortable solvency position;
Protecting Rabobank's identity and reputation: reputation is of paramount importance for
engaging in banking operations;
Risk transparency: identifying, documenting and discussing all risks is essential in order to
obtain a good understanding of Rabobank Group's exposures. Risks must be weighted as
accurately as possible to enable sound commercial decisions to be made;
Management accountability: the entities of Rabobank Group are individually accountable
for their results as well as for the risks associated with their operations. A balance must be
preserved between risk and return, within the boundaries defined by the relevant risk limits;
Independent risk control: this is the structured process of identifying, measuring, monitoring
and reporting risk. In order to ensure integrity, the risk management departments operate
independently of the commercial activities.
Risk management organisation
EDTF recommendation 5 Risk management is performed at different levels within Rabobank Group. At the highest level,
the Executive Board (EB) determines the risk strategy, risk appetite, policy principles and limits
under the supervision of the Supervisory Board. Committees are in place to advice the EB in its
risk management tasks: The Rabobank Group Balance Sheet and Risk Management Committee
(RG BRMC) (including subcommittees for Rabobank International (Rl) and Retail); Rabobank Group
Credit Policy Committee (RG CPC) (including subcommittees for Rabobank International (Rl)
and Retail), the Approval Committee for Credit Models and Other Models (ACCM/ACOM); and
the Group Operational Risk Committee (GORC).
Rl BRMC Retail BRMC RICPC Retail CPC ACCM/ACOM
RG BRMC
EB
RGCPC
GORC
The Supervisory Board regularly reviews the risk exposure of Rabobank Group's activities
and portfolio, with the Risk Committee (RC) preparing the decision-making processes in the
Supervisory Board. The Chief Financial and Risk Officer (CFRO) is responsible for the risk policy at
Rabobank Group. Two directorates share responsibility for risk policy. Group Risk Management is
responsible for overall risk management and more specifically for the policy regarding interest
rate, market, liquidity and currency and operational risks, as well as for the credit risk policy at
portfolio level. Credit Risk Management is in charge of the policy for accepting new clients in
terms of credit risk at individual customer level. Furthermore, within each group entity, risk
management is the responsibility of independent risk management departments.
61 High level of creditworthiness: risk management
