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GOVERNANCE AND MANAGEMENT • 43
TAKING ACTION TO MITIGATE RISKS
As a global company with central crafting 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
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
In 2016, we focused on mitigating and managing key
risks reported in the 2015 Annual Report. The Group
Governance, Risk and Compliance (GRC) 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 risk
awareness in our entities.
KEY RISKS
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 respective risk.
GROUP PRIORITISED RISKS
• RESPONSIBLE BUSINESS PRACTICES
AND TRANSPARENCY
• CRAFTING AND SUPPLY CHAIN
• COMMODITY
• PRODUCT DEVELOPMENT
• TAX
• MAJOR MARKET DEPENDENCIES