Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 63 CORPORATE GOVERNANCE REPORT (CONTINUED) RISK MANAGEMENT AND INTERNAL CONTROL (CONTINUED) Board’s Responsibility The Board has the overall responsibility to ensure that effective and sound risk management and internal control systems are maintained, while management is responsible for designing and implementing an internal control system to manage risks. The Board is also responsible for reviewing the effectiveness of the Company’s risk management and internal control systems. The risk management and internal control systems can provide reasonable and not absolute assurance against material misstatement or loss, and are designed to manage rather than eliminate the risk of failure in the process of attaining business objectives. Based on the results of the annual review, the Board is satisfied and confident with the effectiveness of risk management and internal control systems currently put in place for the Company. Communication of Risk Events Where risk events arise, our communications, both within the Company and to external parties, are an integral part of the risk management system. To enable the Company to make the appropriate decisions and responses to mitigate or address any risk event, relevant information on the incident needs to be communicated by and to the right functions and individuals, completely and accurately, and in a timely manner. With respect to procedures and internal controls for handling and dissemination of inside information, the Company: ‧ has set out written policies and procedures in relation to the handling of inside information under the regulatory requirements of Hong Kong, including but not limited to maintenance of confidentiality, prohibition of insider dealings by the management; ‧ is aware of its obligation under the Listing Rules; ‧ conducts its affairs with closely reference to the “Guidelines on Disclosure of Inside Information” issued by the Securities and Futures Commission of Hong Kong; and ‧ has set out rules and procedures in dealing with enquiries from regulatory bodies, trading halt and additional disclosures to correct a false market. COMPANY SECRETARY The Company Secretary, Mr. LEUNG Chong Shun, is a practicing solicitor in Hong Kong. Although he is not a full time employee of the Company, he reports to the Board and is responsible for advising the Board on governance matters. The primary contact person of the Company with the Company Secretary is Mr. TSE Yue Kit, Executive Director of the Company. The Company Secretary has confirmed that he has taken no less than 15 hours of relevant professional training during the year.