Annual Report 2017

Risk management system and governance

Risk Management plays an important role in the implementation of GrandVision’s strategy. The Risk Management and Internal Control Framework of GrandVision is based on the COSO* Enterprise Risk Management Framework and is in line with the Dutch Corporate Governance Code. The framework aims to combine both 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. 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 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 Board performs oversight by setting the desired ‘tone from the top’, establishing risk appetite and risk strategy and by making decisions to identify, analyze or mitigate risks.

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 form the first line of defense as the risk owners. 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. Furthermore, the quality of internal control performance is an integral part of management incentive schemes at country or business unit level.

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 underlying root causes. Country management acts in accordance with the policies and standards set by the Management Board. These policies and standards are designed and monitored by global functional teams responsible for compliance, controlling and risk management and which form the second line of defense in the Framework.

The independent Internal Audit function of GrandVision, the management of which is partly outsourced to an international audit firm, forms the third line of defence and provides assurance and validation of the overall framework.

We act on our strengths by

  • Further building on our global brands
  • Keeping our highly skilled and motivated workforce engaged
  • Investing in a deep understanding of our customers
  • Leveraging our position to outgrow our markets, while entering into new markets both organically and through acquisitions
  • Building a scalable business model with the capacity to deploy across many locations

We want to improve by

  • Simplifying and integrating our IT systems to better serve our customers and our internal supply processes
  • Digitizing our operations and the way we provide services, while putting our customers at the center of all design and implementation
  • Investing in workforce training through online tailor-made courses, product and sales courses, and field training

We seize opportunities by

  • Having quick decision-making processes with clear mandates at local levels to enable entrepreneurial approaches
  • Leveraging our businesses through new channels geographically and through an omni-channel approach
  • Acting on demographic, consumer, technological and market trends

We face our challenges by

  • Staying on top of disruptive business models by continuously monitoring new developments
  • Staying up-to-date with changes in regulations and evolutions in international policies and adapting accordingly
  • Further building and developing our omni-channel capabilities

* For more information visit www.coso.org