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 Board of Directors makes regular assessments of the overall and specific risks associated with the Group’s business and operations to ensure significant risk is 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 efficiency 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 of the 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
In 2016, we focused on mitigating and managing key risks reported in the 2015 Annual Report. The Group Governance, Risk and Compliance function continued to further drive its risk and control agenda as set out in 2015.
Furthermore, we have continued to focus on increasing awareness of risk management across the organisation. We have consequently appointed a risk responsible in local markets. The local risk responsible is an individual who is part of our risk management in order to enhance the risk awareness in our entities.
At PANDORA, we prioritise risk to maintain a focus on the most relevant risks. Risks at PANDORA are evaluated based on impact and likelihood analysis, and relevant actions are implemented to manage/mitigate the risk.
For a detailed description of PANDORA's primary risks, please refer to the Annual Report 2016.