Internal risk management
Trust starts with a careful and critical risk management process. As a fiduciary manager, we understand that better than anyone. That is why risk management is not only part of the services provided to our clients – internal risk management is also something that we pay close attention to here at TKP Investments. So you can be confident that we are fully in control.
Internal risk management: Three Lines of Defense model
Risk management is embedded throughout all layers of our organization. We use the ‘Three Lines of Defense’ model: this means that we have distributed the tools and measures for managing risk among three different layers in the organization.
First line of defense: the line organization
The line organization performs the primary operational processes. This encompasses all employees involved in providing services to our clients, such as the account managers. The line organization monitors risks at the level of the overall client portfolios, investment portfolios and external asset managers.
Second line of defense: Operational Risk Management & Compliance
The Operational Risk Management & Compliance department is responsible for identifying, recording and monitoring risks in all operational processes. The department supervises the risk management activities of the first line and adjusts processes where necessary.
Third line of defense: Internal Audit
Aegon N.V.’s Internal Audit department constitutes the third line of defense. This department is entirely independent and gives an objective opinion on the first and second lines. The Internal Audit department is mandated to assess all processes within the business on the basis of a risk analysis.
Business Continuity Management
Things can go wrong in any organization – perhaps due to a malfunction, (human) error or even intentionally. Which is why we need to be prepared for any and every eventuality. Our Business Continuity Management (BCM) framework safeguards the continuity of our service provision in the event of a crisis. This ensures that our service to your organization can continue to be provided, no matter what happens.
Annual risk analysis
For the purposes of internal risk management, we analyze the possible risks in our organization every year. This enables us to adjust our internal control measures if necessary. This annual risk analysis includes operational outsourcing risks, IT risks, and legal and compliance risks.
At TKP Investments, we believe transparency is important in everything we do. With the ISAE 3402 type II report, we give our clients insight into the structure and operation of the internal control system used for the performance of our services. The report provides detailed insight into how we guarantee the quality of our service provision. A management statement and opinion from an external auditor are part of this report. A detailed risk analysis from the perspective of the client constitutes the basis for the ISAE report.
Want to know more about our risk management process? Read more about our risk management in the investment process.