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Directors Development Programme Series (HP-P17-1101) www.hkib.org Fighting corruption: challenges confronting bank directors 8 November 2017 (Wednesday) Introduction Banks in Hong Kong are besieged with a number of bribery incidents recently. These cases serve as a reminder that corruption does not cease to be a serious risk for the banking sector. The cost of corruption is not limited to financial loss; it causes damage to the reputation of a financial institution and, eventually, erodes clients’ and investors’ trust. Bank directors, although not directly involved in day-to-day management, can play a far more active role in fighting corruption. Having a thorough understanding about this risk area and its implications is only a start. Ensuring that a bank is well-equipped with an anti-corruption programme covering sound detection, warning and value systems is the key. Contents Using up-to-date and real-life cases in the banking sector, speakers from the ICAC will guide bank directors to hone in on the following important areas: 1. Anti-corruption laws and enforcement Understanding the legal power conferred upon the ICAC by the Independent Commission Against Corruption Ordinance (Cap. 204) and the Prevention of Bribery Ordinance (Cap. 201), and the legal and probity requirements that a bank director is subject to. 2. Internal control systems and procedures What constitute a robust anti-corruption control system in monitoring, detecting / red-flagging, preventing and handling improper practices as well as reporting to management and the Board? To what extent is the detecting system reliable? When should a bank director start casting doubt on the effectiveness and reliability of the detecting mechanism of the overall anti-corruption control system of his bank? How should an effective whistle-blowing mechanism be and what challenges its effective functioning? How to encourage usage of the whistle-blowing mechanism? How to make bank staff and external counter-parts comfortable with using the mechanism? What does it tell bank directors when corruption allegations are made via external channels? What are the indicators when the effectiveness of the whistle-blowing system is undermined? What are the corruption prone areas in the operation of a bank? What are the contributing factors to the risks? What safeguards should be in place to control the risks? 3. Value system in banks Why is ethical corporate culture important to banks? What tools are available for directors to navigate their corporations forward when encountering ethical dilemmas in business? What questions should be asked when the incident is reported to the Board for discussion? What actions / approaches should be taken to address the weaknesses in value system / culture of the bank? How to entrench a culture which is more conducive to anti-corruption at all levels in the bank? What behaviours of senior bank management and bank directors that might suggest an ambivalent stance towards anti-corruption should be avoided? What are the important elements of anti-bribery efforts and training programme in banks? What are the success factors for a corporate ethics programme? Speakers Mr. Alpha Leung Head, Corruption Prevention Advisory Service, ICAC Mr. Leung is the Head of Corruption Prevention Advisory Service of the ICAC which is dedicated for providing corruption prevention solutions to private entities in major sectors including financial services, insurance, charities and tourism. He has over 18 years’ experience in advising public and private sector organisations on systemic control against risks of corruption in the banking and finance sector, law enforcement, procurement practices and major infrastructure projects, etc. Ms. Lily Chung Executive Director, Hong Kong Business Ethics Development Centre, ICAC Ms. Chung is currently the Executive Director of the Hong Kong Business Ethics Development Centre which was set up under the auspices of the ICAC to promote business and professional ethics in Hong Kong. Ms Chung joined the ICAC in 1998 and has been involved in the planning and implementation of various large-scale programmes on ethical governance and directors’ ethics promotion, as well as conducting corruption prevention training and capacity-building seminars for public and private sectors, including corporations from the banking, financial, construction, real estate and tourism industries. Target Participants The programme targets bank directors of board of AIs incorporated in Hong Kong and Chief Executives / Alternate Chief Executives of all AIs. ***** This is also a core seminar of the on-boarding programme for Independent Non-Executive Directors appointed in 2016 and 2017. Their participation is anticipated. Seminar Details HKIB CPD SFC CPT 1.5 Hours 1.5 Hours Date : 8 November 2017 (Wednesday) Time : 9:00am – 10:30am (with light breakfast starts at 8:30am) Venue : The Hong Kong Bankers Club Dragon Room, 43/F, Gloucester Tower, The Landmark, 11 Pedder Street, Central, HK Language : English Fee : HK$2,500 per participant Enrollment : By Fax at By Email to (852) 2544 9946 or [email protected] Enquiry : (852) 2153 7877 / (852) 2153 7865
