Risk management overview

Coca‑Cola HBC has adopted a comprehensive enterprise risk management framework to manage risks and leverage opportunities across the Group.

The dynamic management of risk and opportunity is at the heart of our business planning and value creation processes. We have adopted a strategic enterprise-wide risk management approach that provides a common, integrated framework to manage risks and leverage opportunities across the Group.

We believe that enterprise risk management is a strategic advantage for our company – we selectively seize opportunities because of our enhanced opportunity to exploit risks. We’re building enterprise risk management into our company’s culture and social fabric.

We continuously identify, assess, manage and escalate risks and opportunities, following a rigorous cyclical process that we evaluate against the risk universe in which we operate. We seek to minimise our exposure to unforeseen events and identified risks, and create a stable environment for delivering on our strategic objectives.

Our risk management system

The key features of our enterprise-wide risk management system are:

  • Group statements on strategic direction, ethics and values
  • Clear business objectives and business principles
  • A formalised risk management policy
  • A clearly defined risk universe aligned to our strategic priorities: community trust, consumer relevance, customer preference and cost leadership
  • Integration of risk management into our business planning processes
  • A continuous process to identify and evaluate significant risks to the achievement of business objectives
  • Implementation of management processes to mitigate significant risks to an acceptable level
  • Implementation of strategies to further embed risk management into the cultural fabric of the business
  • Continual monitoring of our internal and external environment for factors that may change our risk profile
  • A regular review of both the type and the amount of external insurance we purchase and the role of our captive insurance entity, with reference to the availability of cover and cost (this is measured against the likelihood and magnitude of the identified risks)

Our risk universe

We divide our risk universe into four areas that correspond to our four strategic pillars: community trust, consumer relevance, customer preference and cost leadership.

Community trust Consumer relevance Customer preference Cost leadership
Ethics, compliance and ABAC Beverage category acceptability Business continuity and IT systems disruption  Commodity costs
Health and safety Commercial and competition
Legal and regulatory environment Macroeconomic environment  Cyber Financial management and disclosure
Employee engagement and talent retention
Fraud Political and security stability Manufacturing and logistics infrastructure 
Sustainability (Operational) Product quality and food safety Distribution and third-party oversight
Stakeholder relationships and capital transactions  Supply chain continuity Tax and treasury 
Business transformation