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Risk factors
Strategic risks
Ahold
Annual Report 2011
Group at a glance Performance Financials Investors
How we manage risk continued
With respect to financial reporting, management has assessed whether the risk management and
control systems provide reasonable assurance that the 2011 financial statements do not contain
any material misstatements. This assessment was based on the criteria set out in COSO: Internal
Control - Integrated Framework. It included tests of the design and operating effectiveness of
entity level controls, transactional controls at significant locations, and relevant general computer
controls. Any control weaknesses not fully remediated at year-end were evaluated. Based on this
assessment, management determined that the Company's financial reporting systems are
adequately designed and operated effectively in 2011
The principal risk factors that may impede the achievement of Ahold's objectives with respect to
strategy, operations, financial, and compliance matters are described in the following section. The
enterprise risk management system, the governance and control standards incorporated into our
ABC Framework and the monitoring systems described above are the principal means by which
we manage these risks. Management is not aware of any important failings in these systems as
of year-end 2011.
The following discussion of risks relating to Ahold should be read carefully when evaluating its
business, its prospects, and the forward-looking statements contained in this Annual Report. Any
of the following risks could have a material adverse effect on Ahold's financial position, results of
operations, and liquidity or could cause actual results to differ materially from the results
contemplated in the forward-looking statements contained in this Annual Report.
We recognize different strategic, operational, financial, and compliance regulatory risk
categories. The risks described below are not the only risks the Company faces. There may be
additional risks that we are currently unaware of or risks that management believes are
immaterial or otherwise common to most companies, but which may in the future have a material
adverse effect on Ahold's financial position, results of operations, liquidity, and the actual outcome
of matters referred to in the forward-looking statements contained in this Annual Report. For
additional information regarding forward-looking statements, see the Cautionary notice.
We have embarked on a new strategy to reshape the way we do business and drive growth (see
the Our strategy section of this Annual Report). Our six priority areas focus on increasing
customer loyalty, broadening our offering, expanding our geographic reach, driving simplicity,
being a responsible retailer, and engaging and attracting the best talent. Under Our strategy in
this annual report we have also stated our ambitions.
Ahold is subject to a variety of risks related to our pillar strategies and the achievement of our
ambitions, including execution, macro-economic, and competitive risks. If we are unable to
execute our plans or meet our ambitions or the expectations of our customers, communities,
employees, or shareholders, our sales and earnings growth could be adversely affected.
