Risk Management continued
Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
Risk category
Risk description
What we are doing to manage the risk
Quality and integrity
of our products
Poor quality products or integrity of our products may
result in reputational and brand damage, resulting
in lower volumes and financial claims. Specific risks are:
Contaminants
Insufficient quality of products
Recalls
Management capabilities
Availability and volatility
in prices of raw materials,
commodities, energy
and water
We may not be successful in attracting, developing and
retaining talented staff with the required capabilities.
Specific risks are:
Less than required number of talented staff employed
to fill current and future positions
Lowerthan required quality of staff in key positions
Risk of limited availability of raw materials, commodities,
energy and water. Volatility in prices of raw materials and
commodities may impact our profit. Specific risks are:
Limited availability
Failure to pass on price increases
Business disruption
Production controls
Business continuity plans
Recall procedures,
crisis procedures and
manuals, production
controls and business
continuity procedures
Objective to use only approved
materials from approved
suppliers for production
Objective to periodically
review material standards
and suppliers
Application of a Company-
wide sustainability
programme, including the
rollout of a supplier code
and the use of the EcoVadis
self-assessment tool for
suppliers, materials
and countries
Safety, Health and
Incidents and accidents in the supply chain and
Strengthen global SHE
Environment (SHE)
in FIEINEKEN's route-to-market. Specific risks are:
organisation, processes
Physical injuries
and procedures
Fatalities
Tracking, monitoring and
evaluation of accidents
and fatalities
Develop and increase our
management talent pipeline
Implementation of appraisal
and evaluation processes
Strengthening management
development programmes
and initiatives
Functional Succession
Committees
Leveraging scale by making
use of flexibility in contracts
Long-term contracts and
active hedging policy
Ownership of several
strategic malteries and
packaging facilities
Implementation of a Global
Purchasing organisation
Improvement of our
knowledge of the market and
our suppliers including policy
to ensure at least dual
suppliers for all primary
production materials
Water sustainability strategy
and plan
Sustainable sourcing plan
Heineken N.V. Annual Report 2013
