Risk Management continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
Risk description
Management capabilities
HEINEKEN relies on the skills of its people to lead its growth agenda
and strategic change programmes. HEINEKEN may not be successful
in attracting, developing and retaining talented staff with the required
capabilities, which may jeopardize our capacity to execute our strategy
and achieve the targeted returns.
Specific risks include:
Shortage of skilled staff to fill current and future positions
Lower than required quality of staff in key positions
Industry consolidation
Consolidation of the alcoholic beverage industry has accelerated
in 2015 and may affect existing market dynamics in the future.
Specific risks include:
Competitive disadvantage with suppliers
Increased competition on commercial spent and customer
acquisition strategies
Risk Management
Strengthening of the management talent pipeline
Deepening of appraisal and evaluation processes
Broad range of management development programmes and initiatives
Functional Resource Committees
Implementation of a new People Strategy, including supporting
global tooling.
Improved cost efficiency by lifting end-to-end productivity
Execution of HEINEKEN's strategy to maintain and develop our
competitive advantages
Permanent market intelligence ensuring timely identification of
promising acquisition targets
Robust balance sheet providing access to liquidity when required
Proven business integration capabilities
Operational risks
Risk description
Safety, Health and Environment (SHE)
HEINEKEN is committed to providing a safe workplace for all
employees and contractors. Despite the controls in place, incidents
and accidents may happen in the brewery, the supply chain and in
HEINEKEN's route-to-market.
Specific risks include:
Physical injuries
Fatalities to employees, contractors or members of the public.
Supply chain continuity
Disruptions in the supply chain could lead to HEINEKEN's inability to
deliver key products to key customers, revenue loss and brand damage.
Changes in the availability or price of raw materials, commodities,
energy and water may result in a shortage of those resources or
increased costs.
Specific risks include:
Failure of IT systems
Factors beyond our control such as natural disasters, political
instability, military conflicts, epidemic disease
Limited availability of production materials or resources,
including water, leading to business disruption
Risk Management
Establishing 'Safety First' as a key business behaviour
Global safety programme to strengthen global standards, organisation,
processes and competencies
Training and development focus on safety leadership and
safety behaviours
Global reporting and deployment of accidents, incidents and near-
misses to drive continuous improvement
Global compliance monitoring and gap-dosing
Establishing Health and Safety as a key pillar in Brewing a Better World
Business continuity plans and back-up scenarios
Global Procurement organisation, strategy and policies:
- Supplier performance measurement system
- Suppliers' solvency monitoring
- Long-term commodity contracts
- Dual suppliers policy for all primary production materials
Ownership of several strategic malteries
Increased focus on sustainable water sourcing and water protection
Global insurance policies
25 Heineken N.V. Annual Report 2015
