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How we manage risk (continued)
Ahold's principal risks and uncertainties1
Information security
Intended merger
Ahold Delhaize
Ahold at a glance
Business review
Governance
Ahold
Annual Report 2015
Risk Strategic area
Key risk drivers
Mitigating actions
Potential consequences
A lack of security around, or
non-compliance with, privacy
requirements for customer or associate
data might negatively impact strategic
initiatives relating to customer loyalty
a Consumer confidence
a Sensitivity of data
a Changing privacy regulations
a Use of third-parties to process and
store data
a Global security threats
a Growth of online sales
a Revoking of EU-U.S. Safe Harbor
agreement for personal data export to U.S.
a Strategic and tactical information security
policy and guidelines
a Information security governance
a Control standards for information
management and security
a Payment Card Industry (PCI) and privacy
compliant control framework
a Information security capabilities
a Information security awareness program
a Cyber insurance coverage
Ahold's business operations generate
and maintain confidential commercial and
personal information concerning customers,
associates, suppliers and the Company,
Data breaches with 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.
We could be unable to complete
the intended merger or realize the
expected benefits, or the intended
merger might distract associates
from the current business
a
Our pillars promises
a Satisfaction of conditions precedent
a Failure termination of merger agreement
a Key staff leaving the company
a Integration of the businesses more difficult,
costly or time consuming than expected
a Workload and lack of focus
a Merger agreement between
Ahold Delhaize
a Governance structure
a Focused merger preparation work streams
a Use of external specialists
a Communication to stakeholders
a Synergy targets and recognition incentive
award for management
If Ahold is unable to complete the intended
merger or associates are distracted from the
current business, anticipated cost savings,
synergies, growth opportunities and other
benefits may not be realized, which could
have a material adverse effect on the
Company's reputation or have a material
adverse effect on Ahold's financial position.
1 Risk objectives: strategic (s operational financial <2 and compliance (c risks listed in alphabetical order.
