Richemont has a risk management process that gives consideration to both strategic and operational risks.
Identified risks’ modelling, assessment and reporting
All identified risks are modelled according to their probability of occurrence and potential impact and are subsequently prioritised by Group management. A consolidated risk report, which includes action plans, is reviewed annually by the Audit Committee and the Board of Directors.
For identified risks, which arise from the accounting and financial reporting, a risk assessment is performed. To reduce financial risks, relevant control measures are defined throughout our internal control system. Remaining risks are categorised depending on their possible impact and are appropriately monitored.