The Executive Board is responsible for the development, implementation and testing of the operation of the internal risk management and control systems geared to the business activities of Vopak. The purpose of these systems is to identify significant risks in time, and to manage those risks as effectively as possible. For example, through the use of Key Performance Indicators geared specifically to each activity, these systems provide insight into the extent to which strategic operational and financial objectives are being met. These systems also facilitate compliance with the relevant legislation and regulations. The systems have been developed on the basis of the recommendations of the Committee of Sponsoring Organisations of the Treadway Commission (COSO), the objective of which is to create a reasonable level of assurance for this area. 

For a description of Vopak's risk management please refer to Risks and risk management. 

This section also describes the key changes to the system discussed by us over the last twelve months with the Audit Committee and the Supervisory Board. Integral components of our risk management policy are the internal Letters of Representation issued by division and terminal management, regular risk self-assessments, quarterly discussions with division management and supervision of the development, implementation and optimisation of existing and new systems. 

Taking into account the limitations outlined below, we confirm that our risk management and control systems provide a reasonable level of assurance that the financial reports contain no material errors. We further state that the risk management and control systems have functioned correctly over 2006. At a minimum, we expect to achieve the same level of internal control and reliability of financial reporting in 2007. 

The financial statements therefore provide a true and fair view of the financial position at 31 December 2006 and of the result of the company's activities for the year 2006, while all matters have been reported as required in accordance with current regulations. 

Our internal risk management and control systems are however unable to offer absolute assurance that the strategic, operational and financial objectives will be fully achieved, or that laws and regulations are always complied with. The systems are also not able to prevent all human errors (of judgement) and mistakes. Furthermore, it is inherent in business that for the acceptance of risks and the implementation of controls, cost-benefit assessments must always be made. 

We continue to further improve and optimise our internal risk management and control procedures. Within that framework, among the actions to be carried out in 2007 will be the introduction of compulsory minimum standards for all relevant business processes.