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Hong Kong has bolstered its position as an international financial centre by implementing a revised corporate governance code, according to a new report jointly published by KPMG and The Hong Kong Chartered Governance Institute.

The report is called Revised Corporate Governance Code On Risk Management and Internal Control Systems: Four Essential Questions For Directors To Ask & Answer. The study highlights how Hong Kong’s enhanced disclosure requirements place a greater emphasis for a structured review process of RMIC (risk management internal control) among listed companies supported by governance professionals as trusted advisors.

The revised corporate governance code, effective for financial years starting on or after 1 July 2025, introduces wider mandatory disclosure requirements for boards to confirm and evidence the appropriateness and effectiveness of their RMIC systems. 

These requirements include detailed disclosures on the scope and findings of annual reviews, including any significant control failings or weaknesses, as well as the responsibilities of internal and external parties in the review process, which governance professionals, apart from an advisory role, serve to coordinate.

“Hong Kong’s revised CG Code marks a significant step forward in strengthening boards' accountability and transparency on RMIC systems,” Alva Lee, partner, head of governance, risk and compliance services/ESG governance services lead, Hong Kong, KPMG China, said.

A survey conducted in April by KPMG and HKCGI, with more than 600 responses from listed companies, found that more than 90 per cent of respondents expect the revised CG Code to impact the board’s effort in reviewing RMIC systems, with around a quarter anticipating a significant impact.