Lenovo 2016 Annual Report Download - page 85

83
2015/16 Annual Report Lenovo Group Limited
Inside information
Regarding procedures and internal controls for the handling and dissemination of inside information, the
Company:
(i) is aware of its obligations under the SFO and the Listing Rules and the overriding principle that inside
information should be announced immediately if it is the subject to the requirements and the safe
harbors as provided in SFO;
(ii) conducts its affairs with close regard to the applicable laws and regulations prevailing in Hong Kong;
(iii) has included in the Code a strict prohibition on the unauthorized use of non-public or inside
information;
(iv) has established a Continuous Disclosures Policy along with its guidance notes for monitoring,
reporting and disseminating inside information to our shareholders, investors, analysts and media.
These policies and guidance notes also identify who are the Company’s authorized spokespersons
and their responsibilities for communications with stakeholders; and
(v) has communicated to all relevant staff regarding the implementation of the Continuous Disclosures
Policy and the relevant trainings are also provided.
Control effectiveness
The Board, through the Audit Committee of the Company, conducts a continuous review of the
effectiveness of the internal control system operating in the Company and considers it to be adequate
and effective. The review covers all material controls, including financial, operational and compliance
controls, and risk management functions. The Board is not aware of any significant areas of concern
which may affect the shareholders. The Board is satisfied that the Company has fully complied with the
code provisions on internal controls as set forth in the CG Code.
Enterprise Risk Management
Lenovo’s ERM framework is effected by the Board and management team, and is applied in strategy
setting and across all major functions of the Company. It involves:–
• The ERM team, who is responsible to design, implement, review, and update Lenovo ERM framework.
• All Lenovo major functions, where risk ownership is established via the appointment of ERM
Champions in each function.
Lenovo recognizes that risk management is the responsibility of everyone within Lenovo, and that risk
is best managed when business functions take responsibility and are accountable for risks. Rather than
being a separate and standalone process, risk management is therefore incorporated as part of Lenovo’s
annual strategic planning process across all major functions of the Company. During strategy planning, all
business functions are required to identify material risks that may impact their strategy objectives. They
also identify, assess and evaluate operational risks. Many aspects of risks are considered, including and
not limited to:
• Business continuity
• Financial impact
• Reputational risk
• Safety and Health
• External Regulations
• Social Responsibility