RISK MANAGEMENT

RISK MANAGEMENT

 

As a global company with central production facilities, a global distribution network and points of sale across the world, PANDORA needs to proactively manage risks.

The PANDORA Board of Directors makes regular assessments of the overall and specific risks associated with the Group’s business and operations to ensure significant risks are managed in a proactive and efficient manner. The Board of Directors regularly reviews the Group’s established internal control systems – including a whistleblowing function – to ensure that they remain appropriate and sufficient. In the case of highly complex transactions and contracts, we work with advisers to mitigate risks.

 

RISK MANAGEMENT GOVERNANCE

The Audit Committee assists the Board of Directors in supervising the financial reporting process and the effectiveness of PANDORA’s internal controls and risk management systems. The Audit Committee reviews significant risks related to PANDORA’s business, activities and operations, as well as risks related to financial reporting. The Management Board is responsible for setting the tone for risk management. Management at all levels is responsible for identifying and appropriately managing risks related to their business area.

Group functions support and facilitate the implementation of the risk process.

 

RISK MANAGEMENT ACTIVITIES AND STATUS

We work to increase awareness of risk management across the organisation, and appoint a person in each region who is responsible for enhancing risk awareness in our entities. In 2017, we focused on mitigating and managing the key risks reported in the 2016 Annual Report. The Group Governance, Risk and Compliance (GRC) function continued to drive forward its risk and control agenda as set out in 2016.

 

KEY RISKS

At PANDORA, we prioritise risks to ensure we focus on the most relevant. Risks are evaluated on the basis of impact and likelihood analyses, and relevant actions are implemented to manage or mitigate the respective risk.