Committee (GRCC). The GRCC is responsible for  managing AEGON’s overall balance sheet position, while  ensuring that risk-taking is within overall tolerance levels  and risk policies, and that the company’s capital position  is sufficient to support both the company’s business  objectives and capital requirements. The Management  Board oversees the activities of the GRCC.  The GRCC is comprised of the company’s Chief Financial  Officer (Chairman), the Head of the Corporate Financial  Center, the Chief Investment Officer for AEGON’s general  account, CFOs from the Americas, the Netherlands and  the United Kingdom and the Chief Risk Officer. The Chief  Risk Officer has the additional authority to defer  decisions that can have a significant impact on the  company’s solvency, liquidity or operations to the  Executive Board Risk Committee.  Risk and capital Committees (RCCs) have also been  established at each of AEGON’s regions and operating  units. The responsibilities and prerogatives of the RCCs  are set out in their respective charters and are similar in  content to those of the GRCC, but tailored to local  circumstances. AEGON’s regional and operating unit  Chief Risk Officers (CROs) have the additional authority  to defer decisions that can have a significant impact on  the region’s or operating unit’s solvency, liquidity or  operations to the Board of the region or operating unit  and AEGON’s Chief Risk Officer. Group Risk is responsible for developing and keeping  oversight of compliance with the risk governance  framework, risk methodology, risk tolerances and risk  policies. This involves identifying risk, particularly  operational and emerging risk, as well as reviewing risk  assessments carried out by operating units.  Group Risk also identifies best risk management  practices, facilitates implementation thereof and helps  ensure there is consistency in the application of these  practices across the company. In addition, Group Risk  performs risk analyses, either at its own initiative or at  the request of management, including the analysis of  extreme events and related management capabilities.  AEGON’s risk management staff structure is fully  integrated. Operating unit CROs have a direct reporting  line into AEGON’s Chief Risk Officer or one of the  regional CROs that report directly into AEGON’s Chief  Risk Officer. Regions include the Americas, Central &  Eastern Europe and Asia.  AEGON’s risk management structure includes the  establishment of three “lines of defense” to ensure  conscious risk-return decisions and limit the magnitude  of potential losses within defined levels of certainty.  The objective of this structure is to avoid surprises,  either due to unidentified risks materializing or losses  that exceed pre-defined risk tolerance levels and related  limit structures. The company’s first line of defense has direct  responsibility for managing and taking risk in accordance  with defined risk tolerances and risk policies, i.e.  business and support functions. The second line of  defense facilitates and oversees the effectiveness and  integrity of enterprise risk management across the  company, i.e. risk functions and committees. Finally, the  third line of defense provides independent assurance  and challenge regarding the effectiveness and integrity  of enterprise risk management across the company, i.e.  audit functions and committees.  Group Risk  Lines of defense ANNUAL REPORT 2010   OUR BUSINESSES  RISK 47 SHARPENING OUR FOCUS