Annual Report 2019

Corporate Governance Report 40 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 20. to review and monitor the Company’s policies and practices on compliance with legal and regulatory requirements; 21. to develop, review and monitor the code of conduct and compliance manual (if any) applicable to employees and directors; 22. to review the Company’s compliance with the Corporate Governance Code and disclosure in the Corporate Governance Report set out in Appendix 14 to the Listing Rules; and 23. to consider other topics, as defined by the Board. AUDITOR’S REMUNERATION During the year under review, the remuneration to the Company’s auditor, Messrs. Deloitte Touche Tohmatsu, is set out as follows: Services rendered Fees paid/payable HK$’million Audit services 7 Non-audit services (Tax, compliance and advisory services) 8 Total 15 RISK MANAGEMENT AND INTERNAL CONTROL It is the responsibility of the Board to ensure that the Group maintains sound and effective risk management and Internal control systems to safeguard the shareholders’ investment and the Group’s assets and to provide reasonable, though not absolute, assurance against material misstatement or loss and to manage rather than eliminate the risk of failure to achieve business objectives. The internal control system of the Group comprises a well- established organisational structure and comprehensive policies and standards. Areas of responsibilities of each business and operational unit are clearly defined to ensure effective checks and balances. The key procedures that the Board established to provide effective internal controls are as follows: ‧ A distinct organisation structure exists with defined lines of authority and control responsibilities; ‧ A unified and comprehensive auditing and management accounting system for the Group is in place to prepare financial and operational performance indicators to the management and the relevant financial information for reporting and disclosure purpose; for maintaining proper accounting records; and for ensuring the reliability of financial information used within the business or for publication; ‧ A centralised management system in respect of external investment, equity transfer and assets disposal is in place. Investment Assessment Committee together with Strategy and Operations Department, Business Development Department and International Division are responsible for the Group’s investment exposure analysis at home and abroad, and for monitoring the level of investment exposures faced by the Group. A set of processing procedures for examination and approval is implemented by our headquarter on the acquisitions and disposals of assets by the operating units under the Group; ‧ Systems and procedures are also in place to identify, measure, manage and control risks including reputation, legal, strategic, financing, guarantee, taxation, market, operational and project construction risks. Exposure to risks of implementation and development of strategies, changes in policies and legal proceedings is monitored by the Group’s officer in charge of strategic research together with Strategy and Operations Department and Board of Directors and Legal Department. Exposure to risks of the Group’s financing, guarantee, taxation