Governance Briefing — January 24, 2024
The Hong Kong Monetary Authority revised Supervisory Policy Manual CG-1, raising governance expectations on culture, climate risk, and accountability for locally incorporated banks.
Executive briefing: On 24 January 2024 the Hong Kong Monetary Authority (HKMA) issued a revised CG-1 Corporate Governance of Locally Incorporated Authorized Institutions module. The update reinforces board accountability for culture, climate risk management, and accountability frameworks.
Key governance signals
- Culture and conduct. Boards must set conduct standards, monitor culture indicators, and oversee remediation of misconduct.
- Climate risk integration. The module emphasises board responsibility for climate strategy, scenario analysis, and disclosures aligned with HKMA’s supervisory expectations.
- Accountability frameworks. Authorized institutions should maintain clear responsibility maps, succession plans, and senior management accountability documentation.
Action checklist
- Update board and committee charters to cover culture metrics, climate oversight, and accountability documentation.
- Enhance management information dashboards tracking conduct risk, climate exposures, and remediation status.
- Review succession planning, fit-and-proper assessments, and training programmes for key function holders.
Sources
Zeph Tech works with Hong Kong banks to embed culture dashboards, climate governance, and accountability frameworks aligned with HKMA CG-1.