Statements of the Executive Board
The Executive Board is responsible for designing and operating TenneT's risk management and internal control system and for reviewing its effectiveness.
The risk management and internal control system consists of the following coordinated instruments:
- The enterprise risk management system, which identifies, analyses and monitors the relevant risks to TenneT;
- The internal control framework to manage critical processes, including control self-assessments by control owners to give account with respect to control effectiveness within the processes;
- Business plans and quarterly reports with information on corporate objectives and their achievement;
- Internal audits of critical processes and discussions on the follow-up of the audit findings with responsible managers;
- Follow-up of the recommendations from the external auditor's management letter;
- An internal Letter of representation (LOR) process, of which the LOR is ultimately signed by the Executive Board.
The Executive Board reviews and analyses the strategic, operational, financial and compliance risks to which TenneT is exposed. It also regularly assesses the design and effectiveness of the risk management and internal control system. The results are shared with the Audit, Risk and Compliance Committee, the Supervisory Board and the external auditor.
The risk management and internal control system does not provide absolute assurance that corporate objectives will be achieved, nor does it give absolute assurance that material errors, losses, fraud or violations of laws and regulations will not occur in the operational processes and/or the financial reporting.
Statement of responsibility
The Executive Board is of the opinion that TenneT's risk management and internal control system ascertain that the financial reporting does not contain any errors of material significance and that the risk management and internal control system has operated adequately in the year under review.
We confirm that the financial statements for the period 1 January to 31 December 2016 have, to the best of our knowledge, been prepared in accordance with IFRS as adopted by the EU and with Part 9, Book 2 of the Netherlands Civil Code, that the disclosures in the financial statements give a true and fair view of TenneT's assets, liabilities, financial position and results as a whole, and that the disclosures in the annual report give a true and fair review of the performance, results and position of TenneT, together with a description of the most significant risks and uncertainties faced by TenneT.
Arnhem, 6 March 2017
J.M. Kroon *
U.T.V. Keussen *
B.G.M. Voorhorst *
O. Jager *
* Statutory Director