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 transformation
programmes. The large number of operating
companies and our fragmented data and
technology landscape 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 world is becoming more digital, data will
become more and more an asset for a company
and technological developments are quickly
following each other. HEINEKEN will need to
continue to develop itself in this area to not lose
the battle for the customer and consumer and
also ensure it is efficient as possible.
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 aims
to prioritise and optimise resource allocation across
its major programmes to ensure they deliver on their
objectives and proactively mitigate the programme
risks. With the Data Driven Transformation
programme our current fragmented data and
technology landscape is being reviewed and ideas
for improvement are being developed.
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
New techniques and technology became available
to strengthen the control environment and to
deliver more efficient and robust financial and
non-financial data.
What we are doing to manage this risk
HEINEKEN is utilising new techniques and
technology to continue to drive the improvement
and standardisation of its accounting and reporting
processes, its controls and to harmonise its system
landscape. HEINEKEN has implemented a common
framework across its operating companies, which
includes Internal Control over Financial Reporting,
Common Accounting Policies, Standard Chart of
Accounts and periodic mandatory trainings. The
assurance model includes active monitoring of
control execution, critical access and segregation
of duties. 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 148-156
Heineken N.V. Annual Report 2019
Financial Statements Sustainability Review 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. The recent health
trends lead to an increased risk of consumers
making claims.
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.
What we are doing to manage this risk
HEINEKEN is constantly looking to enhance its
internal compliance system and resilience to adapt
to changes in the legal environment. 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:
t Values and behaviours, page 145
