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.
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 rules and procedures, 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..
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. Following the rules and procedures, the Audit Committee holds meetings three times a year to advise the Corporation on internal controls and corporate governance issues and consider the Corporation’s auditing matters, and reports to the Advisory Board.
The Corporation maintains an Internal Audit Unit to evaluate the effectiveness and efficiency of the internal control system. The Internal Audit Unit of the Corporation reports directly to the Audit Committee. The Audit Committee reviews and endorses the internal audit plan to ensure adequate audit coverage of operations, and reviews major findings, recommendations and the progress in the implementation of the recommendations arising from the internal audit and other relevant authorities in the meetings. The Audit Committee also meets the external auditor every year to discuss any areas of concern and matters arising from the audit of the financial statements. Under the whistle-blowing mechanism of the Corporation, any staff member can directly report instances of violation of the Code of Conduct or applicable laws and regulations to the Chairman of the Audit Committee or through the Internal Audit Unit.
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 three 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.
The Corporation maintains frequent two-way communication with the policy bureau, the CEDB, to ensure a high level of transparency. Besides making routine reports on financial and corporate matters, the Corporation has also consulted the CEDB from time to time on new measures and services in relation to the discharge of its public mission, and has sought approval for the annual budget and the corporate plan.
The Corporation strives to maintain a sound internal control system and risk management.
The Corporation devotes effort to maintaining an effective and efficient internal control system. It maintains a well-established organisational structure with clearly defined roles, responsibilities and authority, and a set of manuals, procedures and guidelines. The management continually monitors compliance with the established policies and procedures and integrates market best practices into the manuals, procedures and guidelines. The Corporation also maintains various internal committees to facilitate discussion and decision making of management, and reviews key areas of business to ensure established policies and procedures are followed in daily operations and proper approval is obtained.
Enterprise Risk Management
The Corporation sets as its target the maintenance of effective enterprise risk management. Enterprise Risk Management (ERM) Committee was formed to formulate and implement its risk management policies. The ERM Committee meets twice a year to discuss the progress and results of the Corporation’s enterprise risk management. The residual risks of the Corporation have been assessed to be either low or medium. The Corporation regularly conducts risk assessment to ensure the residual risk is maintained at a tolerable level.
The staff member is required to take an oath of secrecy under section 31 of the HKECIC Ordinance to safeguard the confidentiality and to follow the Corporation's Code of Conduct. Every staff member is assessed annually on their understanding of the Code of Conduct, which encourages them to constantly adopt these best practices.