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.
As of May 2012, the Audit & Risk Committee comprises Bert Bruggink (chairman), Alexandra Schaapveld, Pier Vellinga and Jean Frijns. It reports to the full Supervisory Board.
In 2013, the committee met three times. The external auditors, FMO’s Chief Risk and Financial Officer and Chief Executive Officer and the directors of Risk Management, Finance and Audit, Compliance & Control were present at all meetings. The Committee also met separately with the external auditors.
Key issues addressed by the Audit & Risk Committee in 2012 included valuation of derivatives and the use of cash flow hedge accounting. Discussion of the management letter from accountants KPMG mostly centered on technical issues regarding valuation, accounting and some observations with respect to IT.
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.