Risk Management continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
Reporting risks
Risk description
Historically HEIN EKEN has grown its footprint organically and through
mergers and acquisitions, which contributed to a diverse landscape of
processes and systems and a low level of centralisation. Deviations
from the common accounting and reporting processes and related
controls could impair the accuracy of the data used for Group
reporting and external communication.
Specific risks include:
Diverging accounting and reporting processes or controls
Unauthorised access to financial data
Improper segregation of duties
Risk Management
Common accounting policies and standard chart of accounts
HEINEKEN Risk and Control Matrix implemented across the operating
companies and including controls at Group level
Internal Controls on Financial Reporting (ICFR) testing, including
planned remediation of deficiencies
Internal Letters of Representation
Monitoring of critical access and segregation of duties conflicts
with Access Control Monitoring Tooling
Training and global support towards balance sheet reconciliations
and reporting.
Compliance risks
Risk description
Non-compliance
Changes in the legal and regulatory environment tend to increase
the risk of non-compliance to local and global laws and regulations.
Failure to comply with applicable regulations could lead to fines,
claims and brand damage.
Specific risks include:
Non-compliance with the Company Rules and the Code of
Business Conduct
Non-compliance with competition law
Non-compliance to local tax regulations
Non-compliance with marketing and advertisement regulations,
among others on under legal drinking age consumers
Risk Management
Embedding of certain risk and control systems and processes aimed
at compliance with all applicable laws and regulations
Assessment of compliance with the Company Rules and the Code
of Business Conduct
Global functions (such as legal and tax) to maintain the standards
and procedures and develop relevant training
27 Heineken N.V. Annual Report 2015
