DSM Integrated Annual Report 2020

Information, communication and reporting

Communication channels

We strive for an open communication culture and have various channels for communicating risk information both internally and externally. These channels enable our organization to provide relevant information for decision making.

Discussions of risks are integrated into normal business discussions, as these are an intrinsic part of doing business. However, certain specific structures are in place to ensure that specific risks get sufficient attention:

  • Global Fraud Committee
  • Global Issue Committee
  • Cybersecurity Governance Board
  • Ethics Board for People Data
  • Privacy Council
  • Alert Committee (Whistleblower policy)
  • Values Training Review Team
  • Value Assurance Reviews
  • Risk Management Committees in the different units
  • Dedicated discussions with the Executive Committee on the Corporate Risk Assessment and the outcome of the Letter of Representation process

Letter of representation

The Letter of Representation (LoR) is a biannual process whereby DSM’s units provide a comprehensive overview of incidents and risks to the Managing Board. The units report their identified short-term and emerging risks according to four categories: generic & strategic; operational; financial & reporting; and legal & compliance. The LoR also documents the mitigation actions defined in respect of these risks. A formal sign-off by each unit director is required. The output of the LoR process is discussed in the Executive Committee as well as the Audit Committee of the Supervisory Board. The material incidents are reported in the section What still went wrong in 2020.

Top and emerging risks

The output of the Corporate Risk Assessment process — being top risks and emerging risks — is discussed in the Audit Committee of the Supervisory Board and reported below.

Letter of Representation