H&M Group has an entrepreneurial approach to business development. Launching new initiatives and ventures makes it necessary to accept a degree of business risk, while presenting many opportunities. H&M Group carries out regular risk assessments for both operational and financial risks. Financial risks are related to the use of economic funds and financial resources and include foreign currency fluctuations, taxes and various regulations and ordinances. Operational risks mainly comprise internal business risks and external events which may affect the group. During 2023 a number of external risks and uncertainties were identified and handled within the company’s risk management processes.

The H&M group’s overall approach to risk management and internal control is described on page 14 and onwards in the corporate governance report, which can be found as a separate document here.