27
Risk Management (continued)
Reporting risks
Reporting
Compliance risks
Non-compliance
Heineken NV.
Report of the
Report of the
Financial
Sustainability
Other
Annual Report 2016
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
What could happen
Historically HEINEKEN has grown its
footprint organically and through mergers
and acquisitions, which had led 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.
What are we doing to manage this risk
HEINEKEN has implemented a common Risk
and Control Framework across its operating
companies which includes standardised
internal controls on financial reporting,
common accounting policies and standard
chart of accounts, periodic mandatory
training, and active monitoring of critical
access and segregation of duties conflicts.
Recent developments
Since 2015, HEINEKEN has engaged in a
substantial process and IT simplification and
standardisation project which is leveraging
on the progresses made so far and will help to
achieve further efficiency gains while delivering
fast and robust reporting.
What could happen
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
reputation damage.
What are we doing to manage this risk
HEINEKEN has embedded legal compliance
in its risk and controls system, and has
established processes and governance
to drive implementation and compliance
with the Company Rules and its Code
of Business Conduct.
Recent developments
Across many geographies, law enforcement
has become more systematic than in
the past, in particular with regard to anti-
corruption, anti-bribery, competition and data
privacy laws, leading to an increased risk of
being alleged with a breach of regulation.
Over the years, HEINEKEN has constantly been
looking to enhance its internal compliance
system and resilience to the changes of the
legal environment.