About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements Risk Management The Risk Committee discussed a number of critical topics including interest rate risk management, credit risk management and compliance. Two particularly complex topics, client onboarding and transaction monitoring, were monitored especially closely due to the extensive regulations and the developing social expectations associated with the latter Other Attendees Throughout the Year Regular attendees: Wiebe Draijer, Petra van Hoeken, Bas Brouwers Chief Audit Executive, Rudi Kleijwegt Deputy Chief Audit Executive, Dick Duit (until September 1, 2018) Chief Compliance Officer, Angelique Keijsers External independent auditor of PwC, Rogier van Adrichem Other frequent attendees on relevant topics: Other members of the Managing Board Risk Committee of the Supervisory Board Summary Supervisory Board Meetings Risk Committee General Responsibilities and Duties The responsibilities and duties of the Risk Committee are described in the Rules of Procedure of the Risk Committee of Rabobank's Supervisory Board on rabobank.com. The Risk Committee prepares the Supervisory Board's decision-making regarding the supervision of the integrity and quality of Rabobank's development and implementation of the risk governance framework, risk control system and risk appetite. This entails, among others, reviewing and effectively challenging Rabobank's risk analysis scenarios and promoting risk awareness within a strong risk culture. The Risk Committee 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 risk governance framework adopted by the bank. The Risk Committee monitors the working of the product approval process, studies the process and outcome of the annual Internal Capital Adequacy Assessment Process (ICAAP) and the Internal Liquidity Adequacy Assessment Process (ILAAP), reviews stress-test program results and examines the risks associated with Rabobank Group's remuneration policy. Facts Figures Members on December 31,2018 Jan Nooitgedagt, chair (100%) Leo Degle (100%) Petri Hofsté (as of September 1, 2018) (100%) Arian Kamp (as of September 1,2018) (50%) Marjan Trompetter (as of September 12018) (100%) As on September 1,2018, the composition of the Risk Committee has been changed with the appointment of Petri Hofsté, Arian Kamp and Marjan Trompetter as new members (Jan Nooitgedagt as Chair RC and Leo Degle were already members). The resignation of Ron Teerlink and Pascal Visée of the Risk Committee became effective on September 1,2018. Leo Graafsma, who was a member of the Risk Committee, officially resigned from the Supervisory Board on April 18,2018. Meetings During 2018 the Risk Committee convened five times. One of these meetings was a combined meeting of the Risk Committee and the plenary Supervisory Board. This joint meeting was organized to discuss/approve the Capital Adequacy Statement, ICAAP/ILAAP and the outcomes of the Stress Test 2018 scenarios. Four sessions on continuing professional education were held with the members of the Supervisory Board's Audit Committee (see overview below on educational efforts.(**) Topics Regular Topics of Discussion Capital plan/the Capital Management Framework; Internal Capital Adequacy Assessment Process (ICAAP); Internal Liquidity Adequacy Assessment Process (ILAAP); Pillar lib- Group Risk Policy (update); Enhanced Control/Risk Governance Risk Committee Structure; Strategic Risks (top risk analysis and mitigating factors); Group Risk Appetite Statement Risk Management Charter; Integrated Risk Report (Quarterly); Special Topics At the request of the Risk Committee, the Supervisory Board paid special attention to several business segments/markets and topics in 2018 (Business update on Trade Commodity Finance, deep dive on the Dutch residential mortgage portfolio and updates on Business Continuity Management and the impact of Brexit). The Risk Committee had thorough discussions on the status and actual developments regarding CDD/AML (CARE Program) and was extensively informed on the outlook and status of Credit Risk and FR&R with a focus on the quality of the Dutch SME portfolio including the development of percentage NPLs/SDL). Mid 2018, the Risk Committee was also informed on the status of several initiatives that were implemented following the Risk Management function self-assessment in November 2017. The Risk Committee frequently discussed the status and outlook of the Operational Risk profile (including Enhanced Control, Back to Green, RCF), and received two different updates on the governance, opportunities and risks related to the Public Cloud. The meeting also discussed data management, the governance of the Data Governance Board, data management tooling and the different programs that are in place to enhance data quality and mitigate data issues. Finally, the Risk Committee received a thorough review of the outcomes of root cause analysis, EBA stress test results, Pillar 3 and the risk assessment of Banking 3.0. Quarterly reports on Credit, Operational Risk, Legal and Compliance; Global Policies (i.e., Market Risk, Interest Rate Riskin the Banking Book, Whistleblowing, Operational Risk Management, Model Risk, Conflicts of Interest-including the Global Standard Col, Risk Appetite, Capital Stress Testing, CAMS) and Privacy Code for Client Data Privacy Code for Employee Data SIRA SREP (updates on process and outcome, expectation letter/decision letter) During 2018, the following topics were discussed in the Risk Committee: the credit and concentrations risks in the real estate sector, the Dutch dairy sector, and the impact of climate change to the bank's business. Also, the Committee engaged with the Managing Board and the Risk function on the topic of Rabobank's preparedness in the first and second lines of defense for increased credit risk in case of an economic downturn or increasing risk in certain sectors of the economy. The Risk Committee and the full Supervisory Board followed up on the bank's program to enhance and implement revisions to its control framework that will include operational risk control, compliance risk control and financial reporting controls. The Annual Report 2018 - Corporate Governance 112

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 114