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 our Whistleblower function – to ensure that they remain appropriate and sufficient.
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 direction and scope for our risk management, while managers at all levels are responsible for identifying and appropriately managing risks related to their business area.
The Group Governance, Risk and Compliance (GRC) function facilitates the risk management process, while Group functions are responsible for implementing it.
RISK MANAGEMENT ACTIVITIES AND STATUS
In 2018, we focused on mitigating and managing the key risks reported in the 2017 Annual Report. The GRC function continued to drive its risk and control agenda as set out in 2017. The process of quantifying, assessing, executing and monitoring risks was strengthened in 2018 and will be further enhanced in 2019. Key elements are timely involvement of management and dedicated resources to ensure adequate mitigating actions.
At PANDORA, we prioritise risks to ensure we focus on the most relevant ones. Risks are evaluated on the basis of impact and likelihood analyses, and relevant actions are implemented to manage or mitigate the respective risk.