Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Within Rabobank, the departments involved in the bank's
primary processes constitute the 'first line of defence'.
These departments are fully responsible for the day-to-day risk
acceptance and integrated risk management and mitigation
within the established risk appetite framework.The risk
management functions within the group entities and within
Risk Management together constitute the 'second line of
defence'. The risk management functions have a monitoring role
with regard to risks and challenge 'the first line of defence'with
respect to the manner in which it manages risks. In addition,
they report on the risk profile to the management and to the
Executive Board, independently from the first line. Internal
audits form the 'third line of defence'.
At group level, the Non-Financial Risk Committee (NFRC) is
responsible for formulating policy and setting the parameters.
In addition, Risk Management also reports each quarter to the
NFRC on changes in operational risks at group level. A number
of risk management committees have been established within
the group's entities.Their responsibilities include monitoring the
operational risks (including system continuity risks and fraud
risks) of the relevant entity.
The annual risk management cycle contains, among other
things, a group-wide Risk Self Assessment and scenario
analyses with senior managers from the complete Rabobank
Group. The Risk Self Assessment consists ofan inventory of
the most important operational risks and, if risks fall outside
of the risk appetite, identification of mitigating measures.
Risk Management coordinates the annual scenario analyses
through which insight is gained in the group's risk profile.
100 Rabobank Annual Report 2015
