Risk management and internal control
Risk management and internal control are at the heart of every effective management control system, including TenneT’s.
Risk management and internal control objectives
Risk management and internal control are at the heart of every effective management control system, including TenneT’s. With our system, we aim to identify and manage any risks threatening realisation of TenneT’s strategic and operational objectives, as well as enhance the control we have over our day-to-day processes.
The key objectives of our risk management and internal control system are to establish:
- The proper management of risks that could affect TenneT's objectives from a strategic, operational, process- and project-related point of view.
- Compliance with the requirements of any applicable laws and regulations, e.g. the Dutch Corporate Governance Code, the German Control and Transparency in Business Act and the German Accounting Law Reform Act.
- The reliability of external and internal financial and non-financial information.
Our risk management and internal control cycle is performed and reported in our State of Risk report twice a year, giving us a clear picture of TenneT’s overall risk position. This provides management with the necessary means to realise an effective risk management strategy.
Moreover, via the Letter of Representation, management takes accountability for designing, implementing, monitoring and maintaining a framework of measures and controls to mitigate key risks.