Risk Management

The risk management of Delta Lloyd Group is designed to protect the Group against events that undermine the achievement of a sustainable result and the required minimum solvency, or impede the attainment of its strategic objectives.

Delta Lloyd Group's approach to risk management is based on the following elements:

• 'The Future Secured' strategy and the associated core values that give direction to the risk-aware organisational culture of Delta Lloyd Group.


• The control exercised by the Executive Board, the Supervisory Board and the various Risk and Audit Committees. The Audit Committee of Delta Lloyd Group’s Supervisory Board oversees the overall internal control.


• An organisational structure with a governance framework that provides for delegated responsibilities and guidelines for the management structure. The boards and management carry primary responsibility for the effective identification, analysis, monitoring and control of risks. The business units have dedicated Audit Committees, which supervise the effectiveness of the business control systems within the respective business units. In 2008, the regulations for the internal governance structure of the legal entities were brought into line with the control structure at Delta Lloyd Group level.


• The policy principles of Delta Lloyd Group in relation to risk tolerance and risk control. A number of important policy documents have been tightened up, in compliance with the governing risk management policy. The policy is shaped by the Group departments, in consultation with the management of the business units.


• A risk framework that is based on the Enterprise Risk Management model of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The risk framework relates management information and governance to the risk management cycle, as shown in the diagram below.

For a full description of the risks please see the prospectus.