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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 28