Annual Report 2022

66 China Merchants China Direct Investments Limited Annual Report 2022 CORPORATE GOVERNANCE REPORT (CONTINUED) RISK MANAGEMENT AND INTERNAL CONTROL (CONTINUED) Risk Governance Structure The Company’s governance structure for its risk management system is shown below. Each party has well defined and detailed roles and responsibilities. Risk Assessment Methodology The Company’s methodology for its risk assessment comprises four core stages (i.e. Risk Identification, Risk Assessment, Risk Responses, and Risk Monitoring and Reporting). These processes are performed at least once a year to address changes in the Company’s business environment. Audit Committee Functional Heads Board of Directors Internal Audit Risk Management Taskforce