KPMG & HKCGI Report Highlights Impact Of Revised Corporate Governance Code On RMIC

The revised Corporate Governance Code (CG Code), effective for financial years starting on or after July 1, 2025, requires Boards of listed companies in Hong Kong to implement structured review processes for risk management and internal control (RMIC) systems.

The code introduces comprehensive Mandatory Disclosure Requirements (MDRs) obliging Boards to confirm the appropriateness and effectiveness of RMIC systems, disclose significant control weaknesses, and outline responsibilities of internal and external parties. A report by KPMG and the Hong Kong Chartered Governance Institute (HKCGI) highlights that over 90% of surveyed companies expect the code to affect board reviews of RMIC, with around 25% anticipating a significant impact. The report also guides control repositories, testing, and management confirmations to ensure accountability, consistency, and transparency in governance.