Upon his death, the skull of the daemonologist Katam was daubed with runes using the blood of the Chaos Dragon Baudros. The skull continues to utter words of power, and a wizard who listens may learn many arcane secrets. However, every time the bearer consults the skull, there is a chance it will reveal one of the true mysteries of the Realm of Chaos, imparting knowledge that blasts the mind with its scope and impossibility. In time, the skull's whisperings drive its owner insane, reducing him to a drooling madman whose gibberings are joined only by the eerie sound of Katam's laughter.
Source: Warhammer Armies Project: Unofficial 9th Edition
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Arcane Item
The bearer of the Skull of Katam can choose to consult it before attempting to channel power dice each Magic Phase. If they do so, roll 2 extra dice. If the bearer consulted the Skull of Katam, they suffer a -1 Leadership penalty for the rest of the game for every result of 1 rolled when channelling this round – if it is ever reduced to 0, they are immediately removed as a casualty.