Company: AEGOF
Filing Date: 2025-05-16
Form Type: 6-K
Source: 0001193125-25-121236
Chunk: 54

Company: AEGON LTD.
Filing Date: 2025-05-16
Form: 6-K
Chunk 54
---
 material concentrations of risk. Stress testing is conducted in order to assess the ability of Aegon companies to manage liquidity needs in the event of financial market stress. The Aegon Group Liquidity Policy sets out a prudent stress test that all business units must perform at least quarterly and as at the fourth quarter 2024, Aegon was compliant with the requirements set out in this policy. In addition to the Group test, business units are required to create a local test that is specific to their own liquidity risks. Results of the Group and local tests are reported to Aegon’s Executive Committee and Board of Directors. Operational risk Operational risk concentration can occur where specific risk exposures are in excess of operational risk appetite. Aegon’s management maintains a well-controlled environment and sound (conduct) policies and practices to help control these risks and aim at supporting keeping these risks at appropriate levels. Aegon’s operational risk capital (ORC) that is included in the Aegon PICM SCR is calculated using Standard Formula, except for Aegon UK where ORC is based on an Internal Model. Operational risk for Aegon is dominated by the following material risk concentrations:

| • |     | Processing risk for Americas and the UK; and |

| • |     | IT & business disruption risk for all units. |

Processing risk ORC is held on the basis of potential but unlikely extreme loss events such as a material financial misstatement, non-paymentof claims by reinsurer, modelling errors, or failure of an outsourcing partner. Consistent with Aegon’s strategic aims, the Company will be increasing the nature and volume of digitalization of activities in its business operations over the course of the next years. To ensure that the risks inherent with this developing concentration exposure are managed effectively, an IT Risk Management Framework and a Third-Party Risk Management Framework have been developed and implemented across the Group. These frameworks consist of Group-wide risk management policies, risk management standards, and other guidance to aid with consistent implementation of the framework. Aegon measures implementation of its Group-wide policies via the annual policy attestation process. IT & business disruption risk ORC is held on the basis of potential extreme loss events such as a cyber attack, leading to data exfiltration of records of customer data or ransomware attack, (by an external party) targeted at our company and which managed to encrypt files which leads to operational disruption due to the unavailability of critical data. Information security strategy and related roadmaps are in place to help support the reduction of the