The group entities' risk management functions advise on risks and challenge the first line of
defence on how to manage risks at the entity level. Group Risk Management is responsible
for the group-wide risk policy and challenging the group entities and local risk management
functions on their risk management. The internal audit functions at group and entity level make
up the third line of defence.
The Operational Risk Committee is responsible for defining operational risk policy and its
parameters at group level. In addition, Group Risk Management reports on developments in
group-wide operational risks once every quarter. Within the group entities, risk management
committees have been established to identify, manage and monitor, among other things, the
operational risks, including system continuity and fraud risks, of the relevant entity.
Furthermore, product approval committees have been established at various levels within
the bank. These committees provide an additional safeguard for the quality of new product
and process launches, and changes in existing products and processes, with a focus on the
duty of care.
The group entities perform a Risk Control Self-Assessment. In doing so, they identify key
operational risks and mitigating measures if the risks are outside the risk appetite. This process
is facilitated by Group Risk Management and the outcome is fed back at group level to the
Operational Risk Committee. In addition, Group Risk Management annually coordinates
scenario analyses with senior managers throughout Rabobank Group to provide an
understanding of the Group's risk profile.
EDTF
In October 2012 the Enhanced Disclosure Task Force (EDTF), established by the Financial Stability
Board (FSB), presented its recommendations. The recommendations are aimed at improving
the transparency of reporting by banks. Rabobank embraces the EDTF principles except where
the disclosure is to be classified as proprietary or if the disclosure is not relevant for Rabobank.
Annex II contains an overview of the 32 recommendations of the EDTF. This overview also
includes a reference to the page in the document in which the recommendation is discussed.
This will be the Annual Report 2013, the Consolidated Financial Statements 2013 or the Capital
Adequacy and Risk Management Report 2013.
Annual Report 2013 Rabobank Group
