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Corporate Governance

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Corporate Governance

The Hong Kong Export Credit Insurance Corporation (HKECIC) is a statutory organisation governed by the Hong Kong Export Credit Insurance Corporation Ordinance (Chapter 1115) (HKECIC Ordinance). The Corporation is committed to high standards of corporate governance and stresses integrity, accountability and transparency in its corporate governance framework.

Advisory Board

Under the HKECIC Ordinance, the Advisory Board is established to advise the Corporation in the conduct of its business. The Advisory Board currently consists of nine members, including the chairman, from various industries, and two members respectively from the Commerce and Economic Development Bureau (CEDB) and the Hong Kong Trade Development Council. The Advisory Board maintains its Terms of Reference, and holds meetings three times a year to discuss and advise the Corporation in the conduct of business, including the annual budget, corporate and strategic plans, performance evaluations, remuneration adjustments, and matters reported from the Investment Committee and the Audit Committee, etc.
 

Audit Committee

The Audit Committee is established under the Advisory Board to advise the Corporation on internal controls and corporate governance issues and considers the Corporation’s auditing matters in accordance with its Terms of Reference. The Audit Committee currently comprises a chairman and three members from the Advisory Board. It holds three meetings a year to advise the Corporation on internal controls, corporate governance and auditing matters, and reports regularly to the Advisory Board.

The Corporation maintains an Internal Audit Unit to evaluate the effectiveness and efficiency of its internal control system. The Internal Audit Unit reports directly to the Audit Committee. The Audit Committee reviews and endorses the Corporation’s internal audit plan to ensure adequate coverage on operations, and reviews major findings and recommendations as well as monitors their implementation progress. The Audit Committee also meets with the external auditor every year to discuss areas of concern and matters arising. Under the whistle-blowing mechanism, staff member can directly report violation of the Code of Conduct or applicable laws and regulations to the Chairman of the Audit Committee.

Investment Committee

The Investment Committee is established under the Advisory Board to advise the Corporation in the conduct of investment matters in accordance with its Terms of Reference. The Investment Committee currently comprises a chairman and four members from the Advisory Board. Following the rules and procedures, the Investment Committee holds meetings four times a year to advise the Corporation in the conduct of investment matters, and reports to the Advisory Board.
 

Communication with the CEDB

The Corporation maintains regular two-way communication with the CEDB to ensure a high level of transparency.  Other than providing routine reports on financial and corporate matters, the Corporation also consults the CEDB from time to time on new measures and services related to the discharge of its public mission, as well as seek approval for the annual budget and the corporate plan.
 

Internal Control and Risk Management

The Corporation strives to maintain a sound internal control system and risk management regime.

  • Internal Control

    The Corporation maintains an organisational structure with clearly defined functions and well segregated duties. The Corporation management adopts a systematic approach to improve internal controls and enhance efficiency of its established policies, procedures and guidelines; endeavours integrating best control practices adopted by market into its daily operations. The Corporation also maintains various internal committees to oversee business and operations to ensure robust controls and proper check and balance is in place.

  • Enterprise Risk Management

    The Corporation maintains an effective enterprise risk management framework. The Enterprise Risk Management Committee was established to oversee risks and other emerging issues, review and endorse risk management policies. The Enterprise Risk Management Committee meets regularly to discuss risk assessment results and ensure residual risks are controlled at an acceptable level.
     

Confidentiality and Code of Conduct

Each staff member is required to take an oath of secrecy under Section 31 of the HKECIC Ordinance to safeguard the confidentiality of information and to follow the Corporation’s Code of Conduct.  Staff members are assessed annually on their understanding of the Code of Conduct, which encourages them to constantly adopt these best practices.

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