WE ARE MAHOU SAN MIGUEL

Risk control and management

Mahou San Miguel has a risk control and management function. Exercised by the Auditing and Internal Control Department, under the direct oversight of the Executive Committee, it is responsible for implementing and managing the comprehensive risk management system within the reference framework of internationally accepted best practices (COSO and Code of Good Governance) and in accordance with the following.

Control Environment

To create a body of standards, processes, and structures that will serve as the basis for exercising internal control, in accordance with the standards of conduct expected of companies and the organisation's ethical values.

Risk Assessment

  • To identify and assess the different types of risks associated with Mahou San Miguel’s operations, organising these into four major blocks: Strategic, Operational, Financial, and Regulatory.
  • To involve all company managers in adequate identification, management and quantification of all major risks and require them to use this information in decision-making.

Control Activities

To establish the necessary measures to mitigate the impact of the identified risks, if they were to materialise, by identifying and implementing controls (preventive, detective, corrective, automatic, and/or manual), as well as the necessary contingency plans for achieving the objectives.

Information and Communication

  • To provide relevant and high quality information about risk control and management, along with the corresponding controls and contingency plans.
  • To promote knowledge within the company of internal control and management of risks.
  • To communicate the key aspects of the control system to external interest groups.

Oversight Activities

  • To ensure the proper functioning of the risk control and management systems through continuous or periodic evaluations to determine whether the risk control and management system and its components are functioning adequately, communicating the recommended improvement measures to the responsible parties for implementation.
  • To ensure that the risk control and management system mitigates risks adequately within the framework of the defined policy.

Identification of relevant risks

Strategic

Change management, corporate culture and talent development

Lack of agility in adapting to change and failure to promote diversity.

Difficulty in attracting, hiring and retaining qualified resources for optimal fulfilment of the objectives of the organisation.

Inability to establish an environment that supports the integrity, ethical values and competence of the company’s employees through the management philosophy and operating style, allocation of authority and responsibility, and the organisation and development of people.

Failure of management to maintain appropriate labour relations in terms of work-life balance.

Chapter 5:
The best talent

Brand value

Loss of leadership position or inability to maintain the competitive position in the market of our brands.

Establishment of marketing policies or brand strategies that lack consistency or long-term vision.

Chapter 2:
Our commitment

Chapter 3:
We create experiences

Development of products and experiences

Lack of assessment, from the beginning, of the environmental and societal impact of our products and of the experiences we generate around our brands.

Maintenance of the PET grammage in our containers without incorporating more sustainable options like R-PET.

Chapter 3: We create experiences

Anticipation of new forms of sustainable mobility

Failure to effectively apply sustainable mobility concepts in cities with respect to distribution, sales and employee movements.

Chapter 2:
Our commitment

Consumption of our products

Immoderate consumption of our products.

Chapter 2:
Our commitment

Operative

Efficiency in the use of natural resources

Inefficient management of natural resource consumption.

Absence of sustainable innovation projects involving our raw materials suppliers, production centres and environments.

Chapter 2:
Our commitment

Price and supplies of raw materials, containers and packaging

Absence of a business plan for purchasing and/or supply of raw materials to support the financial and operational goals of the company.

Lack of supply and inability to find substitute resources.

High and persistent price fluctuations resulting in significant cost overruns

Chapter 4:
Valued partners

Customers, distributors and suppliers

Absence of measures and tools for creating value for the business of our customers, suppliers and distributors.

Chapter 4:
Valued partners

Safety, health and well-being of employees

Inability to create and maintain a culture oriented towards employee health and safety.

Lack of spaces that contribute to the well-being and happiness of the team.

Chapter 2:
Our commitment

Chapter 4:
Valued partners

Regulatory

Regulatory compliance

Violation of tax, labour, business and consumption, industrial and intellectual property regulations as well as other laws, particularly those of a criminal nature.

Chapter 1:

We are Mahou San Miguel

Corporate Governance

Lack of adequate ethical codes that establish formal conduct standards in the operation of the business according to the laws in force.

Chapter 1:

We are Mahou San Miguel

Product quality and labelling

Failure to identify and prevent legal risks related to non-compliance with governmental and international requirements for product quality and safety.

Chapter 4:

Valued partners

Financial

The financial risks are described in the consolidated Annual Accounts.

Annuals accounts