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A Risk Management Policy outlines how an organization identifies, assesses, and handles potential threats to its business operations. In Hong Kong, companies create these policies to comply with regulatory requirements, particularly those set by the SFC and HKMA for financial institutions.

The policy sets clear guidelines for risk reporting, control measures, and staff responsibilities. It typically covers key areas like operational risks, cyber security, market fluctuations, and compliance obligations. Good policies help businesses protect their assets, maintain stakeholder confidence, and meet their legal duties under Hong Kong's corporate governance framework.

Your business needs a Risk Management Policy when expanding operations, entering new markets, or facing heightened regulatory scrutiny in Hong Kong. This is especially crucial for financial services firms dealing with the HKMA and SFC's regulatory requirements, or companies handling sensitive customer data under the PDPO.

Use it to guide decision-making during major organizational changes, new product launches, or when establishing internal controls. The policy becomes vital during crises, cyber incidents, or market volatility - helping teams respond quickly and consistently. It's also essential when training new employees or updating governance structures to meet evolving compliance standards.

• Risk Assessment And Management Plan: Detailed operational policy focused on identifying and evaluating specific risks, common in manufacturing and construction sectors
• Clinical Research Agreement: Specialized policy for healthcare and research organizations, emphasizing patient safety and clinical trial risks
• Credit Report Authorization Form: Financial sector policy focusing on credit risk management and customer due diligence under HKMA guidelines

• Board of Directors: Approve and oversee Risk Management Policies, ensuring alignment with corporate strategy and Hong Kong's governance requirements
• Risk Management Committee: Develops and updates policies, monitors implementation, and reports to the board on risk exposure
• Compliance Officers: Ensure policies meet HKMA, SFC, and other regulatory requirements while maintaining documentation
• Department Heads: Implement policies within their teams and report risks up the chain
• External Auditors: Review policy effectiveness and compliance as part of regular audits

• Risk Assessment: Document your organization's key operational, financial, and compliance risks specific to Hong Kong's business environment
• Regulatory Review: Check current HKMA, SFC, and industry-specific requirements that apply to your business sector
• Stakeholder Input: Gather feedback from department heads about practical risks and control measures
• Policy Framework: Use our platform to generate a comprehensive template that includes all mandatory elements
• Implementation Plan: Outline staff training needs, reporting procedures, and review schedules
• Documentation System: Set up clear processes for recording risk incidents and policy updates

• Policy Scope: Clear definition of covered risks, business activities, and organizational units under Hong Kong jurisdiction
• Risk Categories: Detailed sections on operational, financial, compliance, and reputational risks
• Governance Structure: Roles and responsibilities of board, management, and risk committees
• Control Measures: Specific procedures for risk identification, assessment, and mitigation
• Reporting Framework: Documentation requirements and escalation procedures aligned with HKMA guidelines
• Review Process: Timeline for policy updates and compliance checks with local regulations
• Data Protection: PDPO compliance measures for handling sensitive information

A Risk Management Policy differs significantly from an Enterprise Risk Management Framework in several key aspects. While both documents address organizational risks, they serve distinct purposes in Hong Kong's regulatory environment.

• Scope and Detail: A Risk Management Policy provides specific guidelines and procedures for handling individual risks, while the Framework offers a broader organizational structure for risk management across all levels
• Implementation Level: The Policy contains detailed procedures for day-to-day risk handling, whereas the Framework establishes high-level principles and governance structures
• Regulatory Focus: Policies typically address specific HKMA or SFC requirements, while Frameworks align with international standards like ISO 31000
• Review Cycle: Policies usually require more frequent updates to reflect changing operational risks, while Frameworks remain relatively stable over longer periods