Ernst & Young, Hong Kong (EY) recently hosted the “Boardroom Briefing for INEDs: Shaping the Future – Navigating Governance, Technology and Economy with Confidence”. Over 150 guests, including independent non-executive directors (INEDs), other boardroom members and senior management of Hong Kong listed companies, together with representatives from regulators, academia and corporates, were joined by EY professionals to explore corporate governance and compliance, AI in business and macroeconomic trends together.
Jack Chan, EY China Chairman and EY Greater China Regional Managing Partner, says: “INEDs’ roles are pivotal in steering companies towards sustainable growth and robust governance. They are the guardians of good governance, ensuring integrity, transparency and accountability, building stakeholder trust and fostering sustainable business practices for long-term success. EY teams are dedicated to helping them navigate complexities and providing support with the knowledge and tools INEDs need to excel in their roles.”
Improve governance from the inside out
Over the last year, efforts from regulators to improve governance of the overall market covered every aspect, from regulating corporate internal structure to enforcement actions. During the “Fireside chat – Corporate governance and compliance update”, regulator representatives illustrated the importance of enhancing the Corporate Governance Code1 and related Listing Rules in strengthening the efficiency, independence and diversity of the board of directors of Hong Kong listed companies, as well as how regulators balanced between progressing governance standards and assisting issuers to comply with the new rules. In regards of enforcement, regulator representatives elaborated during the session how department integration and joint enforcement actions have maximized synergies. Key takeaways of the session included closing the gap of expectation between regulators and company directors on the role of INEDs.
Widespread adoption of AI brings opportunities and risks
Jasmine Lee, EY Hong Kong and Macau Managing Partner, says: “The EY teams stand at the forefront of AI governance, helping organizations navigate the complexities of AI implementation while balancing opportunities and risks. As INEDs, it is crucial to understand the implications of AI on governance, risk management and ethical considerations. I would like to emphasize the importance of collaboration and continuous learning in the field of AI. The landscape is constantly evolving. Staying abreast of the latest developments and best practices is crucial for effective governance.”
The rapid advancement of AI technologies has brought about unprecedented changes in the way businesses operate. Speakers from the “Panel discussion – AI in business: Balancing opportunities, risks and accountability” explored how AI can be leveraged to drive business growth while ensuring effective management of associated risks. Furthermore, they highlighted the importance of establishing robust governance frameworks to oversee AI initiatives and ensure that they align with the organization's values and ethical standards.
Prof Chong Tai Leung, Terence, Executive Director of Lau Chor Tak Institute of Global Economics and Finance and Associate Professor of Department of Economics, The Chinese University of Hong Kong, discussed the economic outlook of Hong Kong and the Chinese mainland in 2025, and stressed the importance of making rational macroeconomic analysis. He says: “Conclusions cannot be drawn without data. The most important data to judge an economy is real GDP growth, unemployment and inflation. You need data to beat data.”
- https://www.hkex.com.hk/News/Regulatory-Announcements/2024/2412192news?sc_lang=en
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