Objectives come in all shapes and sizes. They provide focus: this is what we want to achieve. Take, for example, the following objective:

Always deliver complete store orders on time

Use the buttons to make your deliveries

After predicting the outcome and deciding on an action, you aren’t done yet. You need to continuously evaluate and adjust: did your actions have the effect you wanted? Or did your actions lead to an unpredicted outcome – for better or for worse? If so, they probably need some adjustments. In our example, for instance, the following might happen:

With the ordering and baking schedule in place, it is important to track sales for adjustments. This will guarantee that you can meet customer needs and limit shrink.

And that is how responsible risk-taking works.

Responsible risk-taking is owned both by the organization and by you, personally. You are responsible for adhering to the rules established by Ahold and to manage the risks for your area of responsibility.

We aim to support you in this by providing an open environment, where you can speak up, give and receive feedback, learn from each other's mistakes, and work towards continuous improvement. Our Risk & Control and Compliance functions are there to assist you.

We believe in doing what’s right. This is especially true when it comes to taking responsible risks. So how do you make sure you don’t take irresponsible risks? In general: by using common sense and by following the rules that have been established by Ahold. We trust in your ability to choose wisely within the constraints of your role and position.

To prove our point, take a look at this risky dilemma: how far would you go to make sure extra stock will sell in the store?

Instinct alone, however isn’t enough. You also need to deal with your risks more rationally - in terms of strategies, objectives, and actual results. To help you find your way around the risks you face every day, we created the Ahold in Control Wheel.
By following its four steps, you will always know how to act. The steps are:

1. Define your objectives: How do your objectives fit into the company strategy?

2. Identify the risks: Ahold's risk management is based on our strategy and objectives. You are responsible for pro-actively identifying the risks associated with the objectives.

3. Manage the risks: The Ahold Business Control (ABC) House, containing relevant policies, supports you in managing risks and complying with internal and external rules.

4. Evaluate and adjust: evaluate the effectiveness of your risk management and adjust if needed.

Objectives come in all shapes and sizes. They provide focus: this is what we want to achieve. Take, for example, the following objective:

Always have enough stock available for customers

Use the slider to add muffins to meet your customers' needs.

Once you have set your objective, you can identify the risks that threaten your objective. Risks are basically everything that could keep you from achieving your objective. A risk might be something like this:

Too much stock = increased shrink
Too little stock = reduced sales and unhappy customers

Click to see how shrink is affected

Identified the risks? Then it is time to act. Which actions can you take to manage the risk?

The most important part of this step is to predict the outcome of your actions. Is it fitting for the risk, or are you thinking of a cure that might be worse than the risk itself?

To reduce our risk of loss of perishable foods, the following action might be an idea:

Closely monitor the ordering and baking schedule for the store.

Use the slider to weigh the consequences:

Once you have set your objective, you can identify the risks that threaten your objective. Risks are basically everything that could keep you from achieving your objective. A risk might be something like this:

A problem with the Warehouse Management System (WMS), can or may disable the load scanning software.

Click to see what happens when the systems fails

Identified the risk? Then it is time to act. Which actions can you take to manage the risk?

The most important part of this step is to predict the outcome of your actions. Is it fitting for the risk, or are you thinking of a cure that might be worse than the risk itself?

To reduce our risk of system failure, the following action might be an idea:

Support teams are always on standby to help in case something happens to the system.

Use the slider to weigh the consequences

After predicting the outcome and deciding on an action, you aren’t done yet. You need to continuously evaluate and adjust: did your actions have the effect you wanted? Or did your actions lead to an unpredicted outcome – for better or for worse? If so, they probably need some adjustments. In our example, for instance, the following might happen:

The standby teams provide a solid contingency plan, but constant updates and regular checks proved even more important for ensuring the software always functions properly.

And that is how responsible risk-taking works.

Objectives come in all shapes and sizes. They provide focus: this is what we want to achieve. Take, for example, the following objective:

Improve market share and profit by increasing sales.

Use the slider to achieve your market share

Once you have set your objective, you can identify the risks threatening your objective. Risks are basically everything that could keep you from achieving your objective. A risk might be something like this:

Target are not achieved due to underperforming promotions.

Click to see some profit scenarios.

Identified the risk? Then it is time to act. Which actions can you take to manage the risk?

The most important part of this step is to predict the outcome of your actions. Is it fitting for the risk, or are you thinking of a cure that might be worse than the risk itself?

To reduce our risk of underperforming promotions, the following action might be an idea:

Test a new sales promotions in one of our markets for the potential to increase sales.

Use the slider to weigh the consequences

After predicting the outcome and deciding on an action, you aren’t done yet. You need to continuously evaluate and adjust: did your actions have the effect you wanted? Or did your actions lead to an unpredicted outcome – for better or for worse? If so, they probably need some adjustments. In our example, for instance, the following might happen:

By monitoring sales data closely from this test promotion we can determine if the promotion was successful or needs further adjustments.

And that is how responsible risk-taking works.

Objectives come in all shapes and sizes. They provide focus: this is what we want to achieve. Take, for example, the following objective:

Keep confidential company information safe.

Use the slider to protect your information

Once you have set your objective, you can identify the risks that threaten your objective. Risks are basically everything that could keep you from achieving your objective. A risk might be something like this:

A data breach causes reputation damage for the company.

Click to see what happens

Identified the risk? Then it is time to act. Which actions can you take to manage the risk?

The most important part of this step is to predict the outcome of your actions. Is it fitting for the risk, or are you thinking of a cure that might be worse than the risk itself?

To reduce our risk of information vulnerabilities, the following action might be an idea:

Follow the Global Information Protection instructions. The instructions address how associates should protect and secure confidential information and much more.

Use the slider to weigh the consequences.

After predicting the outcome and deciding on an action, you aren’t done yet. You need to continuously evaluate and adjust: did your actions have the effect you wanted? Or did your actions lead to an unpredicted outcome – for better or for worse? If so, they probably need some adjustments. In our example, for instance, the following might happen:

Review the incident rate after the guidelines have been implemented: how often do incidents occur? With this data, determine if more specific actions are needed.

And that is how responsible risk-taking works.