Annual Report 2024

72 China Merchants China Direct Investments Limited Annual Report 2024 CORPORATE GOVERNANCE REPORT (CONTINUED) RISK MANAGEMENT AND INTERNAL CONTROL To manage and monitor the various risk factors which the Company may be exposed, the Board is responsible for establishing and overseeing the Company’s risk management and internal control systems on an ongoing basis, and ensuring the review of the effectiveness of the risk management and internal control systems has been properly conducted. The main features of this system, which continue to operate, are described below. The Company has reviewed its risk management framework and processes and has implemented relevant measures resulting from this exercise that aim to enhance its framework and processes. In particular, the Company has developed, approved and implemented a risk management system, which is defined and supported by its risk management policy. The terms of reference of the Audit Committee has included its responsibility for effective systems of risk management and internal control. Risk Governance Structure The Company’s governance structure for its risk management system is shown below. Each party has well defined and detailed roles and responsibilities. Audit Committee Functional Heads Board of Directors Internal Audit Risk Management Taskforce