Execution and change management Reporting Non-compliance Report of the Supervisory Board What could happen In recent years, HEINEKEN has engaged in several significant business improvement programmes. The large number of operating companies and their varying level of integration represent a specific challenge to these programmes. These strategic transformation programmes may not deliver the expected benefits or may incur significant cost or time overruns. Recent developments The Group portfolio of global programmes now contains around 40 programmes. It has supported implementation of new capabilities in the area of commerce, finance, supply chain, legal, procurement and human resources, thereby serving HEINEKEN's top line growth and efficiency targets. What are we doing to manage this risk Via our portfolio management approach, applying a consistent project and programme methodology and governance, and placing ownership of the whole portfolio at top management level, HEINEKEN is able to prioritise and optimise resource allocation across its major programmes to ensure they deliver on their objectives and mitigate their risks. What could happen Historically HEINEKEN has grown its footprint organically and through mergers and acquisitions, leading 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 financial and non-financial data used for Group reporting and external communication. Recent developments HEINEKEN continues to invest in programmes to further process standardisation and IT simplification, which will drive efficient, fast and robust financial reporting and strengthening of its control environment. What we are doing to manage this risk HEINEKEN has implemented a common Risk and Control Framework across its operating companies. It 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. HEINEKEN continues to strengthen the governance around non-financial data to further improve the quality of the data reported under its Brewing a Better World programme. Explore Further: - Reporting basis governance of non-financial indicators, pages 145-146. Financial Statements Sustainability Review Heineken N.V. Annual Report 2018 Other Information What could happen Changes in the legal and regulatory environment tend to increase the risk of non-compliance with local and global laws and regulations. Failure to comply with applicable laws and regulations could lead to claims, enforcement and reputational damage. Recent developments Across many geographies, law enforcement has become more systematic than in the past, in particular with regard to anti-bribery and corruption, competition and data privacy laws, and human rights. This leads to an increased risk of allegations of violations of laws and regulations. HEINEKEN is constantly looking to enhance its internal compliance system and resilience to adapt to changes in the legal environment. What we are 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 the HEINEKEN Code of Business Conduct. Explore Further: - Values and behaviours, pages 142-143.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 32