Risk management and internal control
The Board is responsible for maintaining a sound and effective system of risk management and internal controls at Li & Fung, and for reviewing its effectiveness.
Risks are inherent in our business and the markets in which we operate. We recognize that risk management is the responsibility of all of our people as an integral part of our day-to-day business process.
Our risk management and internal controls system is designed to manage the risk of failure to achieve corporate objectives and aims to provide reasonable, but not absolute assurance against material misstatement, loss or fraud.
Our internal control framework is designed to achieve:
The main characteristics of our risk management and internal control framework cover the following areas:
- Control environment
- Management of key risk
- Risk management monitoring
- Internal audit and external audit