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How we manage risk (continued)
Ahold's principal risks and uncertainties1
Legislative and regulatory
environment
Product safety
Ahold at a glance
Business review
Governance
Ahold
Annual Report 2015
Risk Strategic area
Key risk drivers
Mitigating actions
Potential consequences
A changing legislative and regulatory
environment increases the cost of doing
business, tax levels and the complexity
of our operations
Business model
a Compliance deadlines
a Increased and targeted enforcement
a Government budget deficits
a Public opinion pressure
a International Tax Developments
a (e.g., OECD guidelines and EU regulations)
a Local regulatory changes
a Knowledge and awareness of regulations
a Monitoring, review and reporting
on changes
a Operational procedures and guidance
a Education of regulators and
public policymakers, e.g., through
industry associations
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.
The consumption of own-brand products
or other food or non-food products,
or food fraud in the supply chain could
result in our customers' injury, illness
or death
a Internationalization of the supply chain
a Incidents across the world
a Increased number of own-brand products
a Speed of communications (social media)
a Product safety policies
a Control standards for food
and non-food products
a Standard operating procedures
a Dedicated product integrity guidance
and controls at Group level and
in the business
a Monitoring of performance in the business
a Tracing of product origins and conditions
of production
a Third-party certification
a Insurance program
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 operational (O financial 0 and compliance (c risks listed in alphabetical order.
