KPN

Business Control Framework: Risk Management and Compliance

KPN has set itself clear strategic objectives as explained in the strategy section of this report. Pursuing any business objective inevitably leads to taking risks. Risks can jeopardize those objectives in various ways.

Each type of risk encountered, is being dealt with in a manner and with the intensity that matches the nature and size of the risk in relation to the risk appetite of the KPN Board of Management.

The risk appetite is the total residual impact of risks that KPN is willing to accept in the pursuit of its (strategic) objectives.

The risk appetite per strategic objective or risk area is determined annually by the Board of Management. These risk areas comprise themes such as financial, strategic, compliance and (information) security themes.

Effective risk management is a key success factor for realizing the strategic objectives. Risk areas with a low risk appetite and thus a low acceptable residual risk require strong risk management. Risk areas with a high risk appetite need less risk management effort.

KPN Tax Strategy in Annual Report

We believe that transparency is a cornerstone of good tax governance. We regularly put forward understandable and timely communication about our approach to tax, our tax position and total tax payments on a country-by-country basis. We fulfill our disclosure obligations and are transparent to tax authorities. We support global initiatives of the OECD to promote tax transparency and responsible tax management.