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
Economic and
political environment
Information security
Business improvement
and transformation
The current economic and political uncertainties could impact
our business and that of our customers, especially in the
on-trade business. This may lead to lower volumes, pressure
on selling prices and increased credit risk. Weak economies
may impact the solvency of our suppliers. Specific risks are:
Down trading
Increased credit risk
Increased taxes
Discontinuity of supply due to solvency problems of our
critical suppliers
Impairment of goodwill related to acquisitions
Adverse exchange rate fluctuations
Pension plan shortfalls due to the development of the
financial markets
Loss of confidential information and disruption of processes
due to unavailability or failure of IT systems and breaches in
the security infrastructure may disrupt its business and cause
financial damage. Specific risks are:
Disruption of processes outsourced to shared service centres
Cybercrime
Security breaches
Risk that benefits of strategic transformation programmes
will not be realised, of significant cost overruns and of lower
than required quality of the deliverables. Specific risks are:
Estimated benefits too ambitious
Ineffective or inefficient programme execution affecting
supply chain, wholesale business, support functions, quality
standards, business plans and synergies
Additional monitoring and
mitigating actions related
to customers' solvency
Implementation of a Global
Credit Policy
Supplier selection process
Evaluation of the financial
position of critical suppliers
Developing contingency plans
Taking prudent balance
sheet measures
Strengthening of short-term
liquidity positions
Creation of Corporate Affairs
Committee to oversee
regulatory developments
and risk
Strengthen the Company's
information security policy
Implementation and testing
of continuity measures with
our outsourcing partners
Implementation of measures
to secure confidentiality and
integrity of data
Back-up of core operating
data with separate
contingency systems
The increased centralisation
of its IT systems allows
central enforcement of
security measures
Selection and prioritisation of
business improvement projects
Involvement of top
management in all
major projects
Planning of projects and
monitoring of third party
providers, project costs
and benefits
Improved project governance
organisation including
project management and
progress reporting
There may be current risks that do not have a significant impact on the business but which could - at a later stage - develop into
a risk that may have a material impact on the Company's business. The Company's risk management systems are also focused
on timely discovery of such risks.
Heineken N.V. Annual Report 2013
26
