Document background
The Risk and Control Assessment is a critical document used by organizations operating in Hong Kong to systematically evaluate their risk exposure and control effectiveness. It serves as a fundamental tool for meeting regulatory requirements, particularly those set by the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC). This document should be prepared when organizations need to conduct a comprehensive review of their risk landscape, evaluate control effectiveness, or respond to regulatory requirements. It includes detailed analysis of various risk categories, assessment of control mechanisms, gap analysis, and action plans for improvement. The assessment is typically conducted annually or when significant changes occur in the business environment, organizational structure, or regulatory landscape. For Hong Kong-based organizations, this document must align with local corporate governance requirements while incorporating international risk management standards.
