Transitioning towards 2025
Achieving our ambitions for 2025 requires increasing the operational excellence of our organization. In 2017, the first steps in this transition were taken. We streamlined our organizational structure in the Front Office, allowing for more integrated business development. We also developed a set of steering metrics for our Front Office, which provide focus to our activities, and support higher impact in our investment portfolio, while balancing financial performance and productivity. Finally, we started a business process optimization (BPO) project during 2017 to improve our commercial processes and systems in order to better serve our clients. The project will continue into 2018, but during 2017 we already achieved several quick wins.
During 2017, we were proud to announce that we have become Europe’s first development finance institution and the second company in the Netherlands to become EDGE certified. Economic Dividends from Gender Equality (EDGE) is the leading global standard for gender equality in the workplace. Certification required a rigorous external assessment of the workplace environment through an employee survey, and review of company policy and practice against best international practice. Certification fits FMO’s philosophy that an organization can only thrive if it is built on a diverse and inclusive organizational culture.
By year end of 2017, our total staff amounted to 492 employees, all of whom are covered under the collective labor agreement. The gender distribution was 51% male to 49% female. Total staff of FMO represented 47 nationalities, with 35% of our employees born outside the Netherlands. We welcomed the appointment of Fatoumata Bouaré as Chief Risk and Finance Officer (CFRO) in October 2017, and she brings diversity of thought and culture to our Management Board. Key figures on FMO’s workforce are included in the following table.
Total number of employees
Number of new recruits
% of women in senior and middle management
Number of nationalities
Number of trainings held by the FMO Academy
% staff turnover
Total FTEs at year end
Accountability and compliance
FMO successfully prepared itself for the introduction of IFRS 9 per January 1, 2018. Although the risk-return profile of FMO’s investments remains the same, changes in the classification of private equity investments and loans, as well as changes in the administration of impairments on loans in line with IFRS 9, might lead to more volatility in FMO’s Profit & Loss account. The continuously evolving regulatory landscape for banks requires a thorough understanding and a structured implementation process. To that end, FMO put in place the Financial Regulation Committee (FRC) in 2017, as a successor to the former Prudential Regulation Committee. The FRC ensures that FMO continues to adhere to existing financial regulation and is able to assess the impact of these regulations on our business strategy. At FMO we take substantial measures to ensure that our employees, clients and counterparts adhere to the highest ethical standards. For more information on compliance, please refer to the ‘How we invest’ section of this report. In 2017, no major incidents regarding FMO employees being involved in bribery, corruption or other integrity issues were reported, nor were any concerns raised through our Speak Up policy.