Corporate risk strategy business strategy risk appetite
Risk governance
People risk culture
Identify
Manage
Monitoring reporting
Business risk
Credit risk
Market risk
IRRBB
Liquidity risk
Operational risk (including Compliance)
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
The risk management framework covers the regular banking
risk types: credit risk, market risk, interest rate risk in the
banking book, liquidity risk, compliance risk, operational
risk (including tax risk and legal risk) and business risk. Risk
classification provides clear definitions and promotes a
common understanding of risk management throughout
the organisation. In addition to the main risk types, the risk
management framework also uses a more granular classification
that includes risks such as FX-translation risk and model risk.
The risk appetite is determined per risk type to manage how
the risk profile aligns with the Strategic Framework 2016-2020.
In general terms the risk teams are now firmly at the table
in the key management teams of the group to foster better
understanding and cooperation of risk and business, and
enhanced informed decisioning. We have reviewed and
updated for 2018 the composition and mandates of the many
risk committees and rationalised where feasible, with a view
to have roles responsibilities very clear and risk decisioning
efficient and (more) effective.
Managing risks: Risk strategy
Rabobank's mission 'Growing a better world together'
underlines our cooperative roots and dedication to enable our
customers in achieving their ambitions. In its strategy Rabobank
defines priorities, objectives and targets including a capital
strategy. Rabobank's risk strategy supports management in
the realisation of the business strategy by defining boundaries
within which the business must operate. Rabobank's risk
strategy is focused on the following goals:
Support the business in delivering excellent and appropriate
customer focus. We do this by conducting our business
nearby our customers, meeting high standards, and keeping
process and system errors to a minimum. We assess the
integrity of our customers and our business objectively,
provide suitable products to our customers and do not
engage in non-sustainable business activities.
Protect profit and profit growth: Rabobank's business strategy
is strongly related to its cooperative roots. We aim to generate
healthy profits while also realising the highest standards for
our members, customers and for society.
Maintain a solid balance sheet: Sound balance sheet ratios are
essential to ensuring continuity in servicing our customers
under sustainable and favourable conditions.
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