53 ANNUAL REPORT 2010   OUR BUSINESSES  CAPITAL AND LIQUIDITY ❏ IN CONTROL STATEMENT Internal risk management and control systems Responsibilities in respect of the fi nancial  statements and the Annual Report The Executive Board of AEGON N.V. As required by section 5:25c of the Dutch Financial  Supervision Act  (Wet op het Financieel Toezicht),  the  Executive Board confirms that, to the best of its  knowledge, the financial statements prepared in  accordance with applicable accounting standards give a  true and fair view of the assets, liabilities, financial  condition and profit or loss of the company and the  undertakings included in the consolidation as a whole  and that the Report of the Executive Board includes a  fair view of the development and performance of the  business during the financial year and the position at  balance sheet date of the company and the undertakings  included in the consolidation as a whole, together with a description of the principal risks and uncertainties the  company faces. The risk management function develops and monitors  compliance with risk policies and risk frameworks.  This also involves the facilitation of risk identification  (especially for operational and emerging risks) and  reviewing risk assessments performed by operating  units. The risk management function is responsible for  identifying risk management best practices and working  with management to ensure that AEGON adheres to  these practices. Finally, the compliance function plays a key role in  monitoring the company’s adherence to external rules  and regulations and internal policies. On the basis of  the above, AEGON’s Executive Board makes the following  statement regarding the company’s financial  reporting risks: In addition, the Executive Board is responsible for  AEGON’s enterprise risk management framework under  supervision of the Supervisory Board Risk Committee. AEGON’s risk management function monitors and  controls AEGON’s solvency position and ensures that  risk taking is within AEGON’s risk tolerance levels. The Executive Board is informed of any risks that threaten  the economic/statutory solvency, reputation or  operations of the company. The Executive Board is responsible for preparing the  financial statements and the Annual Report in  accordance with Dutch law and those International  Financial Reporting Standards (IFRS) as adopted by  the European Union (EU).  AEGON’s internal audit function assists the Executive  Board in maintaining effective controls by independently  and objectively evaluating the adequacy and effectiveness of the organization’s internal control and  risk management systems. Criteria established under  ‘Internal Control – Integrated Framework’, the Treadway Commission’s Committee of Sponsoring Organizations  (COSO), are used by AEGON’s Internal Audit to analyze  and make recommendations to the Executive Board concerning the effectiveness of internal controls over  AEGON’s financial reporting process and the company’s  internal control framework. Based on risk assessments performed, the Executive Board, under the supervision  of the Supervisory Board and its Audit Committee, is  responsible for determining the overall internal audit work and for monitoring the integrity of the financial  statements of AEGON N.V. The risk management and control systems provide  reasonable assurance regarding the reliability of  financial reporting and the preparation and fair  presentation of AEGON’s published financial statements.  However, they cannot provide absolute assurance that a misstatement of AEGON’s financial statements would be  prevented or detected. The Executive Board is responsible for designing,  implementing and maintaining internal controls,  including proper accounting records and other  management information suitable for running the  business. ■ AEGON’s risk management and control systems  provide reasonable assurance that the company’s  financial reporting does not contain any material  inaccuracies. ■ AEGON’s risk management and control systems  functioned properly in 2010. ■ There are no indications to suggest that AEGON’s risk  management and control systems will not continue to  function properly in 2011. The Hague, March 23, 2011  SHARPENING OUR FOCUS