Risk Management and Control Systems This section presents an overview of Heineken's risk management and control systems including a description of the most important risks, Heineken's exposure and its main mitigation efforts. Managing risks is explicitly on the management's agenda and embedded in the Heineken Company Rules. Our aim with the risk management and control systems is to meet our strategic objectives whilst effectively protecting the Company and the brand against reputational damage. Continuity and sustainability of the business are as important to the stakeholders as growing and operating the business. As a business, we balance our financial sustainability with playing a role in society. Social responsibility and sustainability underpin everything we do. 30 Report of the Executive Board Risk Management and Control Systems The Heineken Risk Management and Control Systems aim to ensure that the risks of the Company are identified and managed, and that the operational and financial objectives are met in compliance with applicable laws and regulations at a reasonable level of assurance. A system of controls that ensures adequate financial reporting is in place. Heineken's internal control system is based on the COSO Internal Control Framework. Risk appetite The Company is recognised for its drive for quality, consistency and financial discipline. Entrepreneurial spirit is encouraged across the Group in order to seek opportunities that support continuous growth such as business development and innovation, whilst taking controlled risks. The balanced country portfolio and the robust balance sheet continue to be a reflection of the risk appetite of the Company. Risk profile Heineken is a single-product company with a high level of commonality in its worldwide business operations, spread over many mature and emerging markets. The worldwide activities are exposed to varying degrees of risk and uncertainty. Some of these may result in a material impact on a particular Operating Company if not identified or effectively managed, but may not materially affect the Group as a whole. Compared to other leading beer companies, Heineken has a significantly wider spread of its businesses across the globe, and does not depend on a limited number of markets. Risk management Heineken strives to be a sustainable and performance-driven company. This is achieved by doing business, which involves taking risks and managing those risks. Structured risk assessments are integrated in change projects, business planning, performance monitoring processes, common processes and system implementations and acquisitions and business integration activities. The Risk Management and Control Systems are considered to be in balance with Heineken's risk profile and appetite, although such systems can never provide absolute assurance. Heineken's Risk Management and Control Systems are subject to continuous review and adaptations in order to remain in balance with its continuous growth and the changes in the risk profile. Responsibilities The Executive Board has overall responsibility for Heineken's Risk Management and Control Systems. It is responsible for resource allocation and risk management policy setting. Its overall effectiveness is subject to review by the Audit Committee. Regional, Operating Company and Functional Management are responsible for managing performance, identifying and managing related risks and the effectiveness of operations within the rules set by the Executive Board. Heineken Company Rules The Heineken Company Rules are a key element of risk management and are in place to set the boundaries within which Operating Companies should conduct their business. A governance procedure and activities ensuring continuous awareness, compliance and follow up are in place. The annual Assurance Letter provides additional comfort on financial reporting and elected Company Rules. Regional Presidents, General and Finance Managers sign for compliance on behalf of their management teams on an annual basis. Governance Heineken clarified its governance cycle consisting of strategic planning, annual business planning and operational planning and performance monitoring. Operating Companies' strategies, business plans, key risks and quarterly performance are discussed with Regional Management. Regional performance is discussed with the Executive Board. The approved three-year business plans from regions and global functions include clear objectives, performance indicators and target setting that

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 27