Rock-solid bank:
risk management
Rabobank pursues a risk policy aimed at maintaining a moderate risk profile.
The risk strategy focuses on continuity and protection of our profits and
profit growth, the retention of solid balance sheet ratios and the protection of
our identity and reputation.This is reflected, for instance, in our comfortable
liguidity position and our strong capital position, as can be seen for example
from our total capital ratio and liguidity coverage ratio.
In the reporting year, EUR 22 billion in long-term funding was raised.
In combination with the decrease in lending and short-term funding,
the dependence on wholesale funding was further reduced. Despite this
strong position, Rabobank remains susceptible to the effects of the current
economic situation. Despite the slight improvement to conditions in the
Netherlands in 2014, bad debt costs of EUR 2.6 billion remained at a high
level.This movement was seen primarily at the Dutch and Irish real estate
activities, as a result of a thorough review of the overall portfolio in this area.
Risk strategy
Rabobank's risk strategy supports the management in the realisation of the business strategy by
establishing the limits within which Rabobank must operate. An important starting point for
the risk strategy is that running risk is an inherent part of the banking business. Without taking
risk, no profitable banking activities would be possible, and for this reason not only risk
acceptance but actually striving to assume a certain degree of risk is essential. The risk strategy
is designed to ensure continuity and focuses on:
Protecting profits and profit growth: Rabobank's business strategy is based on its cooperative
background, and thus maximisation of profit is not an objective.
Retaining solid balance sheet ratios: solid balance sheet ratios are essential to ensure
continuity in the provision of services to customers on sustainable and favourable conditions.
Protecting Rabobank's identity and reputation: Rabobank strives to ensure that its
stakeholders continue to have confidence in the bank.
The mission of the Risk Management department is to ensure the financial stability and
continuity of Rabobank by monitoring its risk profile. An extensive system of limits and controls
is in place to enable Rabobank's risk profile to be monitored and managed. The Risk
Management department ensures that risk management is implemented correctly, that it is in
line with all legislation and that it can match the best practices in the market.
Risk culture
Rabobank's cooperative roots are essential elements in how the organisation strives to achieve
its main objective: the delivery of customer value. Rabobank's core values, formulated in the
'Rabobank Mission Statement'and the 'Code of Conduct', are embedded in daily practice:
respect, integrity, professionalism and sustainability. These values form the principles for the
Rock-solid bank: risk management
