Risk management
Our approach to risk management
Pandora proactively manages risks to support continued growth of our business and to protect our people, assets and reputation. As a global brand with a fully integrated value chain, some of the key risks we are facing are brand strength and product relevance as well as supply chain disruptions. Through our enterprise risk management programme, we actively work to identify, monitor and reduce risks to an acceptable level. We continuously monitor inherent risks that could impact our daily operations, as well as strategic risks that may impact Pandora’s competitive positioning, value creation and strategy execution. We see well-functioning risk management processes as key to maintaining Pandora’s position as the world’s largest jewellery brand.
Pandora's Chief Financial Officer heads up the Risk Management Board, which consists of senior management representatives from across our business. All areas of our business report their most significant risks to Global Risk & Insurance on a quarterly basis, along with assessments of those risks and an overview of implemented mitigations and action plans for future activities.
Our key risks
The Board of Directors reviews and discusses key risks that could threaten Pandora’s business model or the future performance, solvency or liquidity. The key risk groups and the activities we undertake to mitigate them are described. It should be noted that these key risks do not represent all risks associated with our business. Other risks, including those not presently identified or deemed to be less material at present, may also have a potential adverse effect on our business.
Sustainability risks assessment
Sustainability risks are assessed on a quarterly basis and insights from the 2024 double materiality assessment have been incorporated into the enterprise risk management calibration process and reporting. We do not consider sustainability risks to be among our top risks. As part of our climate risk assessment, we evaluate risks across various criteria, with key risks reviewed by the Board. In 2022, we conducted a scenario analysis aligned with our risk management matrix to explore climate risks and opportunities across our value chain, identifying areas crucial to transitioning to low carbon operations. Insights from an on-site risk assessment conducted at the end of 2024 at our crafting sites in Thailand, will enable us to proactively implement tangible recommendations to mitigate potential future supply chain disruptions caused by climate change. (ESRS 2 GOV-5)
