Rabobank Group

Rabobank Group has defined the following risk types as core risk, for which quantitative risk measurement techniques are in place.

• Credit risk: the risk that a borrower/counterparty is unable to repay money owed to the bank. Country risk and concentration risk are included in credit risk.
• Transfer risk: the risk that a government will be unable or unwilling to make ‘hard currency’ available, imposing currency controls, which limit the ability of otherwise healthy borrowers within the country from servicing their foreign-currency debt causing a transfer event
• Operational risk: the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk.
• Market risk: risk of changes in the value of the trading portfolio as a result of price changes in the market. Foreign exchange risk is included in market risk.
• Interest rate risk in banking book: the risk that the bank’s financial result and/or economic value may decline due to unfavourable developments in interest rates.
• Liquidity risk: the risk that the bank is unable to meet all of its (re)payment obligations, as well as the risk that the bank is unable to fund increases in assets at reasonable prices or at all.
• Insurance risk: inherent uncertainties as to the occurrence, amount and timing of insurance liabilities.
• Business risk: the risk of loss due to changes in the competitive environment or events which damage the franchise or operating economics of a business