Internal risk management and control system
The Corporate Governance Code stipulates that organisations must implement an internal risk management and control system. The board of management is responsible for policy development with regard to the company's internal risk management and control system and for evaluating the effectiveness of this system.
Why implement an internal risk management and control system?
The system is aimed at providing a reasonable degree of certainty that the realisation of business objectives is properly monitored, that the company’s financial reporting is reliable, and that the applicable laws and regulations are complied with.
System components
TenneT's internal risk management and control system currently consists of the following components:
- Planning and control cycle
Every two years, a business plan with a five?year time horizon is drafted for the TenneT group and for TenneT TSO. This plan further elaborates the strategic projects and the financing of our strategy, within the framework of our overall strategic objectives. The annual plan sets out our strategic objectives for the following year, as well as the required budget. Our operational and financial performance is subject to regular reporting (early warning system). - Periodic strategic risk analyses;
- TenneT's Company Code and Whistleblower Regulations;
- The Letter of Representation, in which the responsible management explicitly confirms the reliability of the financial reporting data;
- A monitoring and reporting system consisting of internal audits and the associated audit reports.
Internal system
TenneT's board of management recognises the importance of a well‑designed and properly functioning internal risk management and control system. Following on from our activities in this area in 2005, TenneT will devote increased attention to completing the internal risk management and control system in the coming years. This is partly a response to developments within society, and partly a result of the increased ambitions of the company.
