Developments in 2021

More effective focus

In 2021, the risk management department targeted excellent execution of our core tasks in relation to strategic (long-term risks) and operational (short-term risks) risk management. We ensured that full and up-to-date insight into the risks is continually available, for example, and that we implement appropriate measures to manage those risks. This resulted in the In-Control Framework being expanded in 2021 by 60 controls to almost 400 controls a year. Specific attention was paid to a review of all strategic opportunities for the organisation, which led to an increase in the number of identified opportunities. We also further added to all the basic registers of operational risks for all 23 departments. Finally, we further developed the various risk reports. Continually updated risk registers and transparent reporting ensure a sharper and more effective focus on achieving the organisation’s objectives. The department also underwent a further development towards Enterprise Risk Management. We broadened the basis for the In-Control Statement from three to five elements, to provide a truer and fairer insight into risk and also to strengthen the demonstrable degree of risk management. An appraisal methodology was implemented, providing for a uniform method of assessment to determine the In-Control status. The management organisation for Financial Reporting Risks has now been operational for a year and has produced several improvements reflected, for example, in the maturity of the chain structure and the performance of assessments as well as a significant decrease in the number of findings not acted upon. Faster identification and recording of process changes are facilitated through the chain structure. As a result, the impact on the In-Control Framework can be assessed more quickly and the necessary modifications made. Alongside these improvements, there are also points still requiring attention, such as the integration of DNWG and improvements in the internal controls in respect of regulated financial reporting. These will be addressed in 2022. Lastly, we integrated various risk areas, such as Business Continuity Management and Fraud, into the risk management application, thus providing a more uniform insight into risk.

Climate adaptation

With climate change now an established fact, we are taking measures to adapt. Just how much climate change affects our work remains uncertain, however. In the light of our social responsibility, we are paying increasing attention to this matter. For instance, we are exchanging information and experience in external cooperation frameworks, such as the Climate Adaptation Coalition. In 2022, we will continue to pursue innovations in building and construction and we will develop policy aimed at modifying existing infrastructure where necessary and developing new buildings in such a way that risks are minimised. The section on 'Positive impact on people and planet' includes several examples of the steps we are taking in this regard.

For a description of the accidents in 2021, see Safety and security.

For an overview of the average downtime in electricity and gas supply, see Reliability of our grids.

For an overview of uncertainties concerning the smart meter, see High-quality products and services.

For an overview of our financial instruments, see ‘Derivative financial instruments'.

Risks that had an impact in 2021

Risks that had a major impact in 2021 are dealt with in the section on 'Results'. ‘Nitrogen issue’ and ‘Asbestos in fitter's sealant’ are not included in this overview. In relation to the ‘Nitrogen issue’, Stedin has been granted partial exemption for its activities. As a result, the impact is limited. In relation to ‘Asbestos in fitter's sealant’, special work instructions have been prepared. These instructions have been approved by the sector and implemented in standard operations. As no special actions and/or major remediation are necessary, the impact is limited. No further information is provided on these topics in the annual report.

Outlook for 2022

The core objective of risk management remains unchanged in 2022: to support the line in performing risk management. To do so, Risk Management is targeting excellent execution of its core tasks in the risk management process. We are taking steps to further add to, while also rationalising (omit whatever is unnecessary), the basic registers for various types of risk. The department is paying extra attention to the rapid developments and new uncertainties that accompany the energy transition. Focus on climate adaptation is one concrete example. The department is seamlessly aligned with the various organisational developments, such as the integration of DNWG. Lastly, we are pursuing a clearer allocation of roles in the performance of risk management tasks by the department and its second-line risk partners.