21 Risk Management To deliver its strategy, HEINEKEN manages in a systematic way the risks linked to its daily operations as well as the main risks and opportunities arising from its business environment. Risk profile Risk appetite HEINEKEN Business Framework HEINEKEN Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information Effective management of risk forms an integral part of how HEINEKEN operates as a business and is embedded in day-to-day operations. Responsibility for identifying potential strategic, operational, reporting and compliance risks, and for implementing fit-for-purpose responses, lies primarily with line management. Group-wide risk management priorities are defined by regional and functional management and endorsed by the Executive Board, who bears ultimate responsibility for managing the main risks faced by the Company and for reviewing the adequacy of HEINEKEN's internal control system. HEINEKEN is predominantly a single-product business, operating throughout the world in the alcohol industry. HEINEKEN is present in more than 70 countries, with a growing share of its revenues originated in emerging markets. In recent years, there has been increased media, social and political criticism directed at the alcoholic beverage industry. An increasingly negative perception in society towards alcohol could prompt legislators to implement further restrictive measures such as limitations on availability, advertising, sponsorships, distribution and points of sale and increased tax. This may cause changes in consumption trends, which could lead to a decrease in the brand equity and sales of HEINEKEN's products. In addition, it could adversely affect HEINEKEN's commercial freedom to operate and restrict the availability of HEINEKEN's products. HEINEKEN has undertaken business activities with other market parties in the form of joint ventures and strategic partnerships. Where HEINEKEN does not have effective control, decisions taken by these entities may not be fully harmonised with HEINEKEN's strategic objectives. Moreover, HEINEKEN may not be able to identify and manage risks to the same extent as in the rest of the Group. The international spread of its business, a robust balance sheet and strong cash flow, as well as a commitment to prudent financial management, form the context based on which HEINEKEN determines its appetite to risk. A structured risk management process allows HEINEKEN to take risks in a managed and controlled manner. Key to determining the risk appetite is the nature of the risks: - Strategic: Taking strategic risks is an inherent part of HEINEKEN's entrepreneurial heritage. In its pursuit of balanced growth, HEINEKEN is open to certain risks linked to its presence in a wide array of developing countries. - Operational: Depending on the type of the operational risk, HEINEKEN's risk appetite can be described as cautious to averse. In particular, ensuring its employees' and contractors' safety, delivering the highest level of product quality and protecting its reputation have priority over any other business objective. - Reporting: HEINEKEN is averse to any risks that could jeopardise the integrity of its reporting. - Compliance: HEINEKEN is averse to the risk of non-compliance with applicable laws or regulations, as well as with its own Code of Business Conduct. Strategy Our global priorities One HEINEKEN How we govern internally Behaviours How we act Monitoring and Assurance Risk Management How we manage risks Laws and Regulations. Standards and Procedures HEINEKEN Rules How we work Code of Business Conduct How we behave Policies Vision, purpose and values People Processes Systems Data Execution and change management

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 22