"You don't concentrate on risks. You
concentrate on results. No result is
too great to prevent the necessary
job from getting done."
ternal control in operating companies
Heineken is progressing on the Group-wide
development and implementation of uniform
processes, common IT systems and business
control frameworks based on best practices.
At the end of 2005, two third of Heineken's
operations (based on turnover) work in accordance
with the evolving Heineken common system.
In developing and implementing common systems,
risk assessments were included and controls
established or adjusted. These internal controls
ensure the integrity of the information processing
in its support of the day-to-day transactions and
financial and management reporting. In 2005,
Key Business Control Frameworks were developed
and provided to the majority of operating
companies for further optimising control design
id effectiveness testing.
de of Business Conduct and Whistleblowing
the end of 2004, Heineken established Group
I ilicies on Code of Business Conduct and
histleblowing. The majority of the operating
ripanies transposed their local - corporate
proved - policies before the end of 2005.
e Corporate Integrity Committee was established
d-2005. Further reference is made to the
neken Sustainability Report to be published
2006.
Supervision
The Executive Board oversees the adequacy
and functioning of the entire system of risk
management and internal control, assisted
by Group departments. Group Internal Audit
provides independent assurance on the entire
risk management and internal control system.
The Assurance Meetings at operating company
level, oversee the adequacy and operating
effectiveness of the risk management and internal
control system. Regional Management and
Group Internal Audit participate in these meetings
to ensure effective dialogue and transparency.
Following the introduction of the regional
management structure in 2005, Regional
Assurance meetings have been established.
The outcome and effectiveness of the risk
management and internal control systems
have been discussed with the Audit Committee
and Supervisory Board.
Financial reporting
The risk management and control system over
financial reporting contains clear accounting rules,
IFRS training, and a standard chart of accounts.
The Heineken common systems, as implemented
in most of the operations, support common
accounting and regular financial reporting in
standard forms.
ChuckYeager
Heineken N.V. - Annual Report 2005