Our approach to risk management
Pandora’s enterprise risk management is focused on identifying risks early, assessing them candidly, and taking actions to mitigate them so they will not prevent the company from achieving its business objectives. We see a well-functioning risk management process as key to maintaining and building Pandora’s position as the world’s largest jewellery brand.
At Pandora, risk management is an enterprise-wide effort, with management teams across our value chain responsible for the continuous identification, assessment, mitigation, and reporting of current and emerging risks. Pandora also has a dedicated Risk Management Policy.
Pandora’s Chief Financial Officer heads the company’s Risk Management Board, which consists of senior management representatives from across our value chain. Management teams are required to report their most significant risks to the Global Risk Office, along with assessments of those risks and an overview of implemented mitigations and next milestones. All risk assessments take into account the likelihood of an event and its potential impact on the business. The impact is quantified and assessed in terms of potential financial loss or reputational damage.
The Board of Directors considers the key risks that could threaten our business model or the future performance, solvency, or liquidity of Pandora. These key risks make up Pandora’s consolidated risk profile and do not represent all the risks associated with our business. Additional risks not presently identified or those currently deemed to be less material may also have an adverse effect on our business.
Pandora’s consolidated risk profile and our responses to them are described in our latest Annual Report.
The Risk Management Board is assisted in its work by the Global Risk Office, which serves as secretariat to the Board. The Global Risk Office’s role is to review risks, support management on risk information, and consolidate the corporate risk profile containing the company's key risks. The final risk profile is reviewed by Executive Management, the Audit Committee, and the Board of Directors.
The Board of Directors is ultimately responsible for assessing the nature and extent of risks associated with Pandora’s strategic direction and for the implementation of effective risk identification, assessment, and mitigation.