BQiBBQj
r
How we manage risk (continued)
Ahold's principal risks and uncertainties1
Strategy Description of risk
Key risk drivers
Risk mitigating actions
Potential consequence
Ahold at a glance Our strategy Our performance
Financials Investors
Ahold Annual Report 2013 65
Better place Information security (O)
to shop A lack of security around, or non-compliance
with, privacy requirements for customer data
might negatively impact strategic initiatives
relating to customer loyalty
- Consumer confidence
- Sensitivity of data
- Privacy regulations
- Use of third parties to process and store data
- Global security threats
- Growth of online sales
- Strategic and tactical information security
policy and guidelines
- Information security governance
- Control standards for information
management and security
- Payment Card Industry (PCI) and privacy
compliant control framework
- Information security capabilities
- Information security awareness program
- Cyber insurance coverage
Ahold's business operations generate and
maintain confidential commercial and personal
information concerning customers, employees,
suppliers and the Company. Disclosure of
confidential information to unintended third
parties may negatively impact Ahold's corporate
reputation and competitive position or result
in litigation or regulatory action. This could
have a material adverse effect on Ahold's
financial position
Simplicity Legislative and regulatory
environment (C)
A changing legislative and regulatory
environment increases the cost of doing
business, tax levels and the complexity of
our operations
- Compliance deadlines
- Increased and targeted enforcement
- Government budget deficits
- Public opinion pressure
- Knowledge and awareness of regulations
- Monitoring, review and reporting on changes
- Operational procedures and guidance
Ahold's activities are subject to various laws
and regulations in each local market where it
operates. The cost of compliance with any of
these laws could impact Ahold's operations and
reduce its profitability. See further discussion of
consequences of the legislative and regulatory
risks below
Responsible Product safety (O, C)
retailing Customers might become injured or ill from the
consumption of own-brand products or other
food or non-food products, or as a result of
food fraud in the supply chain
- Internationalization of the supply chain
- Customer trust in brands
- Incidents across the world
- Increased number of own-brand products
- Speed of communications
- Product safety policies
- Control standards for food and non
food products
- Standard operating procedures
- Dedicated product integrity departments
at Corporate Center and both continents
- Monitoring of continental performance
- Third-party certification
Though it has mitigating actions in place, Ahold
may face product safety problems, including
disruptions to the supply chain caused by food-
borne illnesses and negative consumer reaction
to incidents, which may have a material adverse
effect on the Company's reputation, results of
operations and financial position
1 Risk objectives: strategic (S), operational (O), financial (F) and compliance (C), risks listed in alphabetical order.
