Risk management and control systems

Risk Management has an important role in the implementation of GrandVision’s strategy. The objective of GrandVision’s Risk Management and Internal Control Framework is to achieve a balance between an effective and professional organization on the one hand, and a risk profile that GrandVision is willing to accept for the business on the other hand. Risk Management and Internal Controls make a significant contribution to the prompt identification and adequate management of strategic, market and business risks. They also help to achieve operational and financial goals and to comply with the applicable legislation and regulations.

The Management Board, under the supervision of the Supervisory Board, bears ultimate responsibility for GrandVision’s Risk Management and Internal Control Framework. The management teams in the business units are responsible for implementing the strategy, achieving results, identifying underlying opportunities and risks, and ensuring effective controls. They have to act in accordance with the policies and standards set by the Management Board, in which they are supported by global functional teams.

GrandVision’s Governance and Internal Control standards provide a necessary precondition and foundation for growth. Both internal and external resources are established at group level to not only detect control issues, but to proactively support the country management teams in solving the underlying root causes. GrandVision has developed and deployed a comprehensive Internal Control Framework comprising a set of minimum internal control standards that all business units must comply with. Compliance is reported on and monitored throughout the organization via a comprehensive internal audit program, the management of which is partly outsourced to an international audit firm. Furthermore, the quality of internal control performance is an integral part of management incentive schemes on a country level.