aerational risks 47 Stability of Africa and the Middle East Region In the Africa and Middle East region, current volume growth is driven by economic growth in Nigeria, the Middle East and in Central Africa. The region remains stable and is at peace in most areas. In Nigeria, the unrest in the Niger Delta is largely resolved and that region has now returned to relative calm. Economic downturn The economic crisis has impacted our regular business activities and performance, in particular in consumer spending and solvency. However, the business impact differed across our regions and operations. Local management has assessed the risk exposure following Group instructions and is taking action to mitigate any higher than usual risks. Intensified and continuous focus is being given in the areas of customers (managing trade receivables and loans) and suppliers (financial position of critical suppliers). Also, management attention is given to our relationships with banks (see capital availability risk) and insurance companies redit worthiness (re)insurance companies). Regional Management and involved Group functions oversee the Tectiveness of management analysis and action, supported input from Internal Auditors. ^organisations and change programmes any reorganisation projects (amongst others, centralisation back office activities, closure of breweries and other ghtsizing and downsizing activities) have been realised, e under way or are in preparation. Highest impact is in te supply chain, wholesale business and support functions Europe and Americas. Due to social unrest or temporarily duced operational effectiveness, there is a risk that oduction quality and supply continuity could be affected ad might negatively impact financial performance and ompany reputation. ompany-wide strategic programmes are overseen by the xecutive Board, whilst change projects at regional and local vel are directly managed by appropriate management ams including capacity allocation and priority setting. The aerating Companies concerned manage reorganisation ojects with care, the right speed, alignment with levant industrial and external relations and consistent mmunication to employees. Contingency plans have been ut in place and clear targets are set on achieving the main aange objectives. Risk Management is an integral part of inning change projects. Business integration In the pursuit of further expansion, Heineken seeks to strike a balance between organic and acquired growth. Recently, Heineken has been very acquisitive with transactions in emerging markets, the Scottish Newcastle acquisition in 2008 and the expected completion of the acquisition of FEMSA during 2010. In most acquisitions, Heineken is faced with different cultures, business principles and political, economic and social environments. This may affect corporate values, image and quality standards. It may also impact the realisation of long-term business plans, including synergy objectives, underlying the value of newly acquired companies. In order to mitigate these risks, Heineken continuously improves its business development and integration activities. This includes significant involvement of relevant Group processes, planning and departments, Operating Companies and Regional Management in carrying out effective due diligence processes and preparing 'take charge' and integration plans. Heineken has best practice programmes in place for acquisition and integration processes, which include standardised acquisition and due diligence processes. Supply continuity Discontinuity of supply of our products could affect revenue and market shares. This is not considered a major risk due to the relative size and geographical spread of operations. However, specific attention is given to the supply of beer from the Netherlands to profitable export markets. Heineken Netherlands Supply is finalising the implementation of a Business Continuity Management process related to the supply from the Netherlands, which is integrated with the planning and reporting cycle. It is secured through integration with ISO certified quality management assurance systems. Information security Heineken's worldwide operations are increasingly reliant on information systems. The increased centralisation of IT systems allows central enforcement of security measures across Operating Companies. However, it also means that the impact of any information security incident will be much larger and therefore requires strict monitoring. Heineken's Operating Companies and the central IT services must comply with a strict information security policy to ensure the confidentiality and integrity of information and the availability of information systems. An IT risk management system is in place for all sites including IT risk identification and monitoring, biannual policy compliance assessments, progress of improvement monitoring and independent audits. Annual Report 2009 - Heineken N.V.

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Jaarverslagen | 2009 | | pagina 44