Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Risk Committee of the Supervisory Board
General task
The duties assigned to the risk committee include the supervision of the Executive Board with regard to the risk policy pursued by the Executive Board, risk management
and the associated risk profile. This includes the performance of the product approval process and the risks associated with the Rabobank Group's remuneration policy.
The risk committee also discusses the financing structure and the policy regarding the adequacy and allocation of capital, liquidity and the short-term and long-term
funding in the light of the business strategy and the adopted risk policy.
Facts figures
Members on 31 December 2016
Jan Nooitgedagt, chairman as of 14 September 2016
Leo Degle
LeoGraafsma
Ron Teerlink
Pascal Visée, as of 14 December 2016
Wout Dekker, member until 14 September 2016
Erik van de Merwe, chairman until 14 September 2016
Other members of the Supervisory Board frequently attended the meeting as observers
Meetings
There were eight regular meetings and two extra meetings, with over 95% attendance.
Two sessions on continuing professional education were held with the members of the audit committee (see overview below on educational efforts)
Topics
Regular topics of discussion
Pillar 3 report;
Capital plan the Capital Management Framework;
Internal Capital Adequacy Assessment Process (ICAAP);
Internal Liquidity Adequacy Assessment Process (ILAAP);
Balance Sheet Management Mandate (formerly 'Funding and Capital Mandate');
Group Risk Policy (update);
Risk Governance Risk Committee Structure;
Group Integrated Risk Assessment (top risk analysis and mitigating factors);
Group Risk Appetite Risk Appetite Statements for the upcoming year;
Risk Charter;
Integrated Risk Report;
Risk appetite statement;
Reports on specific types of risk, such as credit risk, market risk, model risk, operational risk and interest rate scenarios;
Semi annual risk disclosure;
Risk Culture;
Risk Oversight Committee - Regulatory Heatmap and
Recovery and Resolution Planning.
Special topics
At the request of the risk committee, special attention was paid to several markets and sectors in 2016. The risk committee also studied periodical reports on data
management and data quality. The risk committee monitored the introduction of the new Risk Control Framework (RCF), strengthening the 'Three Lines of Defense'
model. The risk committee further discussed the result of various risk related on-site assessments by ECB/DNB.
Additional comment
The Supervisory Board will explicitly address the topic of product approval and product innovation in an education session in 2017.
Cooperative Issues Committee of the Supervisory Board
General task
The duties assigned to the Cooperative Issues Committee (CIC) include the assessment of the Executive Board's reports on the cooperative organisation and operation of
Rabobank. The CIC also devotes specific attention to the sustainability strategy.
Facts figures
Members on 31 December 2016
Arian Kamp, chairman as of 14 September 2016
Irene Asscher-Vonk
Petri Hofsté, as of 30 December 2016
Marjan Trompetter
Ron Teerlink, chairman ad interim until 14 September 2016
Wout Dekker, member until 14 September 2016
Meetings
There were three meetings with 100% attendance.
Topics
In 2016, the CIC reflected extensively on the scope of the CIC and topics to be discussed, given the new governance structure of Rabobank.
The main duty of the CIC is to assess and strengthen the efforts of the Executive Board regarding Rabobank as a cooperative. In this context, the Executive Board
asked the CIC to challenge and provide advice on the realisation of Rabobank's goal of remaining a meaningful cooperative. The CIC deliberated with the Executive
Board on questions such as "How can Rabobank be a meaningful cooperative for its stakeholders, adding value for amongst others its members, clients and (the
local) community?" and "How can the cooperative structure of Rabobank contribute to the strategy of Rabobank and the way the bank operates?" The CIC tries to
link the 'meaningful cooperative' pillar to the strategies Banking for Food and Banking for the Netherlands, considering aspects such as membership, participation,
(local) communities, new markets, new technologies and innovation. To get an outside-in perspective, the CIC was informed on the outcome of a meeting with young
members of local Rabobanks on their expectations of the bank.
In addition, the CIC, among others, assessed the functioning of the new governance structure, including the new role of the performance directors ('kringdirecteuren')
towards local Rabobanks.
Finally, the CIC also addressed sustainability topics.
Other attendees throughout the year
Regular attendees:
Wiebe Draijer, Petra van Hoeken, Bas Brouwers
Head of Audit Rabobank, Rudi Kleijwegt
External auditors PwC
Other attendees throughout the year
Regular attendees:
Wiebe Draijer and Rien Nagel
Head of the Cooperative Governance department, Dirk Duijzer
and on occasion the head of Sustainability, Bas Rüter
159 Report of the Supervisory Board of Rabobank
