How we manage risk continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Key risk drivers
Mitigating actions
Potential consequences
I Risk objectives: strategic (S), operational (O), financial (F) and compliance (C) risks listed in alphabetical order.
Business continuity (O)
Disruption of critical business
processes may result in
non-availability of products
for customers
Competitive environment and
economic conditions (S)
Changes to the competitive
landscape and a weak
macroeconomic climate without
appropriate response could
threaten Ahold Delhaize’s ability
to achieve its strategic objectives
A better place
to shop
Our sustainable
business model
Dependence on IT (legacy) systems
Centralized facilities
Dependence on logistics
service providers
Dependence on suppliers of
strategic own-brand products
and services
Cyber threats
Events of an exceptional nature
Consumer value perception (price,
assortment, quality)
Changing customer behavior (e.g.,
online shopping) and competition
Lack of distinctiveness
Consumer purchasing power
under pressure
Inflationary forces impacting cost
of goods sold
Pressure on margin
Research and monitoring
of consumer behavior
Price benchmarking
competition
Analysis of
economic developments
Actively monitoring
and developing
eCommerce business
Approved strategies
Promotional activities
Building more personalized
customer relationships
Strengthening own brands
Business continuity
governance structure
Business continuity strategic
guidelines and tactical policy
Business continuity framework
with guidance and procedures
Business continuity and disaster
recovery plans
Insurance program
Ahold Delhaize is focused on the execution of its strategic
promises. Unforeseen effects could impair the effectiveness of
Ahold Delhaize’s strategy and reduce the anticipated benefits
of its price repositioning and cost savings programs or other
strategic initiatives. These factors may have a material adverse
effect on the Company’s financial position, results of
operations and liquidity.
For more information see Business review
While Ahold Delhaize continues to maintain and invest in
business continuity and disaster recovery plans, business
interruptions could have a material adverse effect on the
Company’s financial position, results of operations, liquidity,
customer perception and reputation
Ahold Delhaize’s principal risks and uncertainties1
Risk Strategic area
