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In 2016, we initiated several improvements to our Risk Management and Internal Control system. To facilitate the further standardisation and harmonisation of our risk processes, reporting and way of working, all Risk Management and Internal Control activities across TenneT Group were centralised in one department during 2016.

Risk analysis and reporting was improved by introducing an integral bi-annual 'state of risk' report. This report details TenneT's risk position in a more harmonised way for the company overall and in one integrated report giving insight in the key strategic and operational risks and the development of our internal control framework including the results from control self-assessments.

In the strategic risk assessment 2016, in line with the developments in governance and reporting requirements around risk management, the Executive Board determined the risk appetite for each strategic goal. Combining views on risk appetite and the development of our strategic risk position, the discussion further focused on setting out actions to mitigate risks if the risk score exceeds risk appetite and how this will translate into the operational steering of the company and the specific - internal and external - actions taken by the board.

In Internal Control, we made progress on further building a sustainable Internal Control Framework (ICF) by implementing harmonised working methods and quality standards. Besides improving ICF around financial reporting risks, including the full implementation of the bi-annual control self-assessment process in both the Netherlands and Germany, we made further progress in developing non-financial reporting and business risks within our ICF.

The introduction of the Corporate Project Risk Management Handbook in 2016 was an important step towards improved project risk-related processes and controls company-wide across all operating segments. Given our large investment programme, project risk management continues to be an important focus area and we are extending our team of project risk managers to support this. In addition to the steps taken in managing the risks of our large infrastructure projects, another milestone was the implementation of a company-wide and harmonised IT risk-management tool.