Richemont has a risk management process which gives consideration to both strategic and operational risks. 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 the Group’s internal control system. Remaining risks are categorised depending on their possible impact and are appropriately monitored.
Details of the Group’s financial risk management are contained in note 3 of the consolidated financial statements in the Annual Report.