Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
regulations. In May 2017, the Risk Committee, joined by several
other Supervisory Board members, visited the project team that
handles client cases on SME derivatives.
Rock-solid bank
The financial and risk targets outlined in the Strategic
Framework 2016-2020 include strengthening capital and
liquidity buffers, balance sheet composition, consciously
weighing risk and return, and improving performance. In 2017,
the Supervisory Board was regularly informed on financial
markets developments and the development of Rabobank's
ratings and key financial indicators, including capital ratios and
funding position. Rabobank's financial position was compared
to that of its peers in the Netherlands and Europe as well as its
strategic goals. We periodically reviewed the development of
the balance sheet, the return on invested capital (ROIC) and
the capital ratios, and also monitored whether Rabobank was
operating within the limits of the Balance Sheet Management
Mandate 2017.
In 2017, the Supervisory Board was informed at least quarterly
on the status of Rabobank's ongoing transition towards
enhanced through increasing income and reducing costs
and FTE in orderto realise Rabobank's strategic targets. The
Supervisory Board (either as a whole or represented in the Audit
or Risk Committee) also received regular updates on the status
of projects and important themes contributing to remaining
a rock-solid bank, such as the Risk Control Framework, Data
Quality BCBS #239 compliancy, CDD, the Core Banking
Transformation, the Credit model Landscape, IFRS9 and the
Basel III reform.
The Supervisory Board was informed on ongoing business
cases and new initiatives for digitalisation and innovation. We
monitored the progress and actions of the Managing Board in
mitigating potential transition risks.
In 2017 the Risk Committee and the Supervisory Board
deliberated extensively with the Managing Board on
Rabobank's risk appetite as a whole and that of the commercial
entities within Rabobank Group.The Supervisory Board
monitors whether Rabobank is operating within set limits and
following the right procedures in case a limit is breached. Risk
updates are frequently discussed in both Risk Committee and
Supervisory Board meetings.
Keeping Rabobank healthy also entails non-financial aspects,
such as strong leadership, capable employees, reliable
IT-systems and close monitoring and mitigation of a broad
spectrum of non-financial risks. In view of this, during the past
year, the Supervisory Board (in full or in one of the committees)
regularly assessed matters concerning succession planning,
talent development and education, employee participation,
the safety and availability of IT systems, compliance with
(upcoming) rules and regulations, operational incidents, and the
follow-up of In Control and audit and regulatory findings.The
Audit Committee and Supervisory Board emphasised the need
to adequately and punctually address audit and regulatory
findings, and satisfied themselves that the respective business
owners were fully committed to resolving any issues arising
from the findings.
Meaningful cooperative
The Supervisory Board (either as a whole or through the
Cooperative Affairs Committee (CAC)) deliberated with the
Managing Board on Rabobank's mission of'Growing a better
world together'. We regularly monitored the progress on the
dual strategy Banking for Food and Banking for the Netherlands,
through which Rabobank endeavours to become a more
successful and meaningful cooperative bank and to add long-
term value for its clients and society. On several occasions (e. g.
with PwC) we devoted attention to non-financial KPIs, including
sustainability KPIs. We also spoke with the Managing Board on
the preparations for the meetings of the Regional Members'
Council and the General Members'Council and the general
sentiment at them.
Supervisory Board members also show their commitment to
Rabobank by operating as liaison officers both internally and
externally. Individually and as a group we invest in constructive
relationships with both internal and external stakeholders, such
as members (GMC), employees of local Rabobanks, regulators,
the external accountant, internal experts and Rabobank's Works
Council. Some facts and figures on several of these relationships
are given below.
Empowered employees
In 2017 Rabobank launched the Rabo Story and associated
values and behaviour during SJEV- events ('Stel je eens
voor'/'Envision'meetings) for employees worldwide. A
new four-dimensional leadership profile was launched,
based on'personal leadership', 'vitality', 'craftsmanship'and
'adaptability'. Additionally, in 2017 the Remuneration and
FIR committee and the Supervisory Board paid regular
attention to other performance and health themes and
initiatives such as Rabobank's organisational culture (based
on the outcome of frequent pulse surveys, a Groupwide
Organisational Health Index (OHI) survey and the JST
Deep Dive on Culture).Topics discussed in this framework
included the impact of Rabobank's transition on redundant
and remaining employees, the outcome of the Rabobank
health monitor (absenteeism and vitality of employees),
Rabobank Annual Report 2017 - Corporate governance
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