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 single 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. Our 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 more information about our enterprise risk management efforts, see our section on Corporate Governance.
Our key risks
The Board of Directors (the Board) reviews and discusses key risks that could threaten Pandora’s business model or the future performance, solvency or liquidity. On the following page, 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. This year, Pandora was also impacted by the announcement from the US government of additional tariffs on imported goods. This impacted Pandora in relation to products imported to the US and originating mainly from Thailand but also China, Vietnam and several other countries.
Sustainability risks assessment
At the end of 2024, Pandora conducted a climate scenario survey on our crafting facilities to assess the risks of flooding and the impacts on business, including financial exposures under different scenarios. In 2025, a list of initiatives based on the survey were implemented to improve the flooding risk profile of our crafting operations. This enabled us to proactively implement tangible recommendations to mitigate potential future supply chain disruptions caused by climate change.
