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.
