Overview Report of the Executive Board Report of the Supervisory Board Financial statements Other information Quality and integrity Poor quality products or integrity of our products may result in reputational Production controls of our products and brand damage, resulting in lower volumes and financial claims. Business continuity plans Specific risks are: Recall procedures. Insufficient quality of products Recalls. Safety, Health and Incidents and accidents in the supply chain and in our route-to-market. Strengthen global SHE Environment (SHE) Specific risks are: organisation, processes Physical injuries and procedures Incidents and accidents Tracking, monitoring and Fatalities. evaluation of accidents and fatalities. Management We may not be successful in attracting, developing and retaining Develop and increase our Capabilities talented staff with the required capabilities. management talent pipeline Specific risks are: Implementation of appraisal Less than required number of talented staff employed to fill and evaluation processes current and future positions Strengthening management Lower than required quality of staff in key positions. development programmes Functional Succession Committees. Availability and volatility Risk of limited availability of raw materials, commodities, energy Leveraging scale by making use in prices of raw materials, and water. Volatility in prices of raw materials and commodities of flexibility in contracts commodities, energy may impact our profit. Active hedging policy and water Specific risks are: Implementation of a Global Limited availability Purchasing organisation Failure to pass on price increases Improvement of our knowledge Business disruption. of the market and our suppliers Water sustainability strategy and plan. Industry We might fail to successfully participate in industry consolidation Strengthen the M&A activities consolidation and miss opportunities to acquire target companies. and organisation Specific risks are: Strong due diligence processes Missed opportunities Implementation of a common Overpaying business integration process. Unsuccessful business integration. Marketing and Inability to further build our brands due to lack of consumer insight, Strengthened Brand Management unsuccessful innovations and ineffective use of social media. Commercial Organisation The Company may not be able to defend its intellectual property rights. Central marketing academy Specific risks are: Investments in consumer Limited or unsuccessful innovations and market intelligence Failure to use opportunities of social media. Strengthened innovation organisation Increased use of social media. Disruptions in the Disruptions in the supply chain may lead to inability to deliver Business continuity plans supply chain key products to key customers, leading to lower volumes. Implementation of Specific risks are: back-up scenarios. Failure of IT systems. Heineken N.V. Annual Report 2012 39

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2012 | | pagina 41