46 AEGON’s risk governance framework Governance structure  Risk and Capital Committees  earnings and capital position. These plans also cover  extreme event scenarios, such as the possibility of  pandemics in one or more of the company’s main markets. During 2010, AEGON took a series of measures to limit  the company’s exposure to major financial risks (see  page 45). AEGON has a strong culture of risk management,  based on a clear, well-defined governance framework.  The goals of this framework are as follows: AEGON’s risk management framework is represented  across all levels of the organization. This ensures a  coherent and integrated approach to risk management  throughout the company. Similarly, AEGON has  a number of company-wide risk policies in place, which  detail specific operating guidelines and limits. These  policies are designed to keep overall risk-specific  exposures to a manageable level. Any breach of policy  limits or warning levels triggers immediate remedial  action or heightened monitoring. Further risk policies  may be developed at a local level to cover situations  specific to particular regions or operating units.  AEGON’s risk management governance structure has  three basic layers: The Executive Board Risk Committee (EBRC) also  supervises the work of AEGON’s Group Risk & Capital  AEGON’s Executive Board has overall responsibility for  risk management. The Board adopts the risk governance  framework and determines the company’s overall risk  tolerance and company-wide risk policies.  In 2010, AEGON established the Executive Board Risk  Committee with responsibility for ensuring proper  execution of the risk governance framework, as well as  monitoring compliance with the risk tolerance and  company-wide risk policies. The Executive Board Risk  Committee has three members: the Chief Executive  Officer, the Chief Financial Officer and the Chief Risk  Officer. This Committee reports regularly significant risks  to and discusses risk strategy with the Risk Committee  of the Supervisory Board, which is responsible for  overseeing AEGON’s enterprise risk management,  including risk governance and measures taken to ensure  risk management is integrated properly into the  company’s broader strategy. The Risk Committee of the  Supervisory Board also supervises overall risk exposure  in light of management’s risk tolerance, the company- wide risk policies and AEGON’s overall solvency position.  This Committee reports to the full Supervisory Board on  a quarterly basis or more frequently, if required. Details  of members of the Supervisory Board’s Risk Committee  can be found on page 63 of this Annual Report. It is the  responsibility of the Executive Board to inform the  Supervisory Board should any risks directly threaten the  solvency, liquidity or operations of the company.  The Chief Risk Officer also has an individual responsibility  in this regard and has direct access to the Chairman of  the Supervisory Board Risk Committee.  ■ To minimize ambiguity by clearly defi ning  responsibilities and reporting procedures for decision  makers. ■ To institute a proper system of checks and balances  by ensuring that senior management is aware at all  times of material risk exposure. ■ To manage concentration of risk by avoiding the  threat of insolvency from an over-concentration of  risk in particular areas. ■ To facilitate diversification by enabling management  to identify diversifi cation benefits from apparent  risk-return trade-offs. ■ To reassure external constituencies that AEGON has  appropriate risk management structures and controls  in place. ■ The Supervisory Board (and the Supervisory Board  Risk Committee). ■ The Executive Board (and the Executive Board Risk  Committee). ■ Risk and Capital Committees (RCCs) present at group  level, regional level and in AEGON’s operating units.