Audit & risk committee

The Audit & Risk Committee monitors economic capital issues, in line with Basel II guidelines. It reviews and advises on FMO's financial position, operational risks and reporting, corporate governance relating to financials and processes, including compliance, internal and external control, and audit reports.

After the retirement of Willy Angenent, the Audit & Risk Committee comprised Bert Bruggink (chairman), Rein Willems, Pier Vellinga and Jean Frijns. It reports to the full Supervisory Board.

In 2011, the committee met three times. The external accountants, the CR&FO and the CEO, the Risk Management Director, the Audit, Compliance & Control Director and the Finance Director were present at all meetings. The Committee also met separately with the external auditors.

Key issues addressed by the Audit & Risk Committee in 2011 included the risk appetite and risk guidelines, the economic capital model and the funding policy in light of the stressed situation on financial markets. The (interim) management letter from accountants KPMG, laying out its observations and recommendations regarding internal control at FMO was discussed extensively. Special attention was requested for the calculation of economic capital and the internal capital ratio, segment reporting, user access to IT applications and the procedures around local currency transactions.

Reports that were discussed on a regular basis were the quarterly development and financial report, the quarterly updates on FMO's risk profile and the progress report on audit, compliance & control.