Carlsberg’s comprehensive approach to risk  management involves the identification,  assessment, prioritisation and economic  management of risks that might prevent the  Group from achieving its strategic ambition.  The Risk Management Policy sets out the requirements for the risk management pro- cess in the Group. the risks related to carrying out the Group’s  strategy – both short-term and long-term  – are identified and that relevant preventive  actions are taken. RISK MANAGEMENT FRAMEWORK Carlsberg’s risk management framework is  a systematic process of risk identification,  analysis and evaluation, providing a com- prehensive overview of strategic risks and  enabling the Group to mitigate and monitor  the most significant risks. Our risk management approach is top-down  and covers all major entities across regions,  markets and functions. The framework is  based at the strategic level to ensure that  Ultimately, the Supervisory Board is respon- sible for risk management. The Supervisory  Board has appointed the Audit Committee  to act on behalf of the Supervisory Board.  The Audit Committee monitors the overall  strategic risk exposure and the individual risk  factors associated with the Group’s activities.  Monitoring is mainly performed in connec- tion with the quarterly reporting process. The  Audit Committee adopts guidelines for key  areas of risk, monitors developments and  sees that plans are in place for the manage- ment of individual risk factors, including  commercial and financial risks. The Executive Committee (ExCom) is responsible for reviewing the overall risk  exposure associated with the Group’s activ- ities. Strategic risks are assessed according to  a two-dimensional heat map rating system  that estimates the impact of the risk on net  revenue or brand/image and the likelihood of the risk materialising. Based on this as- sessment, ExCom updates the existing heat  map to reflect changes in perceived risks to  the business, and a number of high-risk issues  for the coming year are identified. In addition,  any risks in relation to the Group strategy for  the subsequent three-year period are identi- fied and appropriate actions are agreed upon. Local entities and Group functions are  responsible for the identification, evaluation,  qualification, recording and reporting of the  management of strategic risks at local level.  Local-level risk assessment follows the same  principles as Group-level risk assessment and  is based upon the heat map described above.  The local risk review is carried out regularly,  and, following the review, local risk owners  are appointed and given responsibility for  mitigating the risks through a programme of risk-reducing activities.  In accordance with the Risk Management  Policy, ExCom identifies owners of short- term and long-term risks, who are then  responsible for mitigating the risks through a programme of risk-reducing activities.  A formal procedure is in place for ongoing  identification, assessment and reporting  during the year of any new or emerging  risks that are determined to have a material  impact upon the business. Group Internal Audit is responsible for fa- cilitating and following up on risk-reducing  31 Management review RISK MANAGEMENT Carlsberg Group Annual Report 2013 RISK MANAGEMENT GOVERNANCE  STRUCTURE At Carlsberg we consider effective risk  management an integral part of our business  operations as it reduces uncertainty, helps  the Group achieve its strategic ambition and  facilitates value creation for all stakeholders. China is a very important market in our Asia region. Our presence is extending  from the far west to the central part of the country, where in 2013 we further  expanded our presence through the acquisition of Chongqing Brewery.