In control statement

FMO has internal risk management and control systems that enables us to take risks and control them and that comply with international best practices.

Adequate internal risk management and control systems strongly support the attainment of objectives in the following categories:

  • Realization of strategic and business objectives;

  • Effectiveness and efficiency of processes;

  • Reliability of financial reporting; and

  • Compliance with laws and regulations.

The Management Board regularly considers the design and effectiveness of FMO’s internal risk management and control systems (taking into account the approved risk appetite) and discusses all related significant aspects with senior management. The results of the Management Board’s monitoring of FMO’s internal risk management and control system – including significant changes and planned major improvements – and the defined risk appetite are discussed with FMO’s Audit & Risk Committee, which reports these to the Supervisory Board.

Based on our monitoring of the company’s internal risk management and control systems, and cognizant of their inherent limitations described below, we have concluded that FMO is in compliance with the requirements of best practices 1.4.2 and 1.4.3 of the Dutch Corporate Governance Code. The Management Board makes the following statement:

  • The report provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems;

  • The afore mentioned systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies;

  • Based on the current state of affairs as explained in the Financial Performance paragraph, it is justified that the financial reporting is prepared on a going concern basis; and

  • The report states those material risks and uncertainties that are relevant to the expectation of the company’s continuity for the period of twelve months after the preparation of the report.

We note that the proper design and implementation of internal risk management and control systems significantly reduces, but cannot fully eliminate, the possibility of poor judgment in decision-making, human error, control processes being deliberately circumvented by employees or others, management overriding controls, or the occurrence of unforeseeable circumstances.

Another limiting factor is the need to consider the relative costs and benefits of risk responses. Properly designed and implemented internal risk management and control systems will therefore provide reasonable, but not absolute, assurance that FMO will not be hindered in achieving its business objectives, or in the orderly and legitimate conduct of its business.

Regarding internal risk management and control systems the Management Board has identified the following areas of improvement. These are actively managed:

  • The current and upcoming Regulation puts pressure on FMO and requires significant attention and effort from it's resources. To further enhance management of the regulatory implications the risk governance has been adapted by installing the Financial Regulation Committee. A Privacy project is addressing the adherence to the current Data Protection Act and new GDPR regulation and the KYC review processes are reinforced to fully meet the requirements.

  • Data quality issues remain an attention point, although some data quality improvements have been realized. In order to further improve the accessibility, consistency, granularity and quality of risk & finance data, an Information Program has been put in place to further mitigate this risk.

  • FMO is in the process of further strengthening its risk management and internal control framework for front to end processes. Next to this specific focus on for instance ESG, (operational) risk management and information security is put on the 2018 agenda.

Responsibility statement

We have committed to ensuring, to the best of our abilities, that this report was prepared and is presented in accordance with the Integrated Reporting framework and that the integrity of all information presented can be assured.

In accordance with article 5:25c sub 2 part c of the Dutch Financial Supervision Act (Wft) we state that, to the best of our knowledge:

  • The annual accounts give a true and fair view of the assets, liabilities, financial position and profits of FMO and its consolidated companies;

  • The annual report gives a true and fair view of the position on the balance sheet date and developments during the 2017 financial year of FMO and its consolidated companies; and

  • The annual report describes the material risks that FMO faces.

The Hague, March 15, 2018

Jürgen Rigterink, Chief Executive Officer

Jürgen Rigterink
German, 1964, male
Appointment in current position
Jürgen will end his tenure as CEO on 1 April 2018.

Linda Broekhuizen, Chief Investment Officer

Linda Broekhuizen
Dutch, 1968, female
Appointment in current position
2014-2018, 2018-2022
As of 1 April 2018, Linda will be acting CEO until succession is in place. 

Fatoumata Bouaré , Chief Risk & Finance Officer

Fatoumata Bouaré
Ivorian (Ivory Coast), 1966, female
Appointment in current position