Risk Management Advisory

Risk Consulting for Initial Public Offering (IPO)

By going listed, corporations are capable of accessing to the capital market to further diversify and develop companies’ business and enhance their reputation. Launching an IPO project is a complex, time-consuming and rigorous process. The better prepared the company is, the more efficient and less costly the process can be. Undertaking the responsibility to make declaration set out in the Rules Governing the Listing of Securities (the “Listing Rules”), the sponsor is required to carry out due diligence in respect of the listing applicant’s accounting and management systems, including the assessment on the internal controls systems and procedures.   AVISTA can provide a Pre-IPO Internal Control Review service for potential IPO candidates so as to assist our client and its sponsor to assess the sufficiency of the finance, system and internal controls procedures of the company. Our experienced professional team has cooperated with a number of clients from various industries in pre-IPO projects to provide professional advice on establishment and/or enhancement of internal control system suitable for listed company.

Risk Management and Internal Control Review

According to the revised Corporate Governance Code and Corporate Governance Report (“Code”), the board is responsible for evaluating and determining the nature and extent of the risks it is willing to take in achieving the listed company’s strategic objectives, and ensuring that the listed company establishes and maintains sound, appropriate and effective risk management and internal controls systems to safeguard shareholders’ investment and the company’s assets. The board should oversee management in the design, implementation and monitoring of the risk management and internal control systems, and management should provide a confirmation to the board on the effectiveness of these systems.   AVISTA provides professional advice on the design, efficiency and effectiveness of the risk management and internal control system in order to help the company to establish and maintain a sound and effective risk management system. Our review is carried out in accordance with the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Internal Audit

According to the most updated Corporate Governance Code and Corporate Governance Report (the “Code”), it is recommended that listed companies should have an internal audit function to carry out analysis and independent appraisal of the adequacy and effectiveness of companies’ risk management and internal control systems. Those listed companies without an internal audit function should review the need for one on an annual basis.   We provide services including internal audit quality review, reengineering internal audit function, internal audit planning, subject matter expert, as well as relevant trainings.

Corporate Governance (CG) Review

In recent years, more and more concerns over the corporate governance of companies, especially listed companies, are raised. Besides, the Stock Exchange of Hong Kong (“HKEx”) has introduced the Corporate Governance Code and Corporate Governance Report (the “Code”), which set out the principles of good governance, and two levels of recommendations: (a) code provisions; and (b) recommended best practices. The listed companies must meet certain requirements to comply with the Code or disclose considered reasons for its deviation. To assist companies to maintain sound corporate governance, in order to sustain and enhance their competitiveness and corporate image in the market, AVISTA could provide the following review services:   CG Code Compliance Review   It is important for the listed companies to incorporate corporate governance into its management structure and internal control policies and procedures. We, therefore, provide advice to the listed company to establish sustainable and effective corporate governance structure and internal control procedures through performing regular reviews. It would help the listed company to standardize and enhance effectiveness in operational management, and ensure full compliance with the Code.   CG Report Disclosure Review   According to the Listing Rules of the HKEx, listed companies must include a Corporate Governance Report, which contains all the information set out in the Code in its annual report. Any failure to do so will be regarded as a breach of the Listing Rules. To prevent breaches, we could conduct a disclosure review on compliance with the mandatory corporate governance disclosure requirements under the Companies Ordinance and the Listing Rules for the Corporate Governance Report, as appropriate.

Compliance Review

As a listed company in Hong Kong, it is subject to a number of Listing Rules governed by the Stock Exchange, which are used to monitor the behaviour of the listed company. However, the Listing Rules are subject to continuous amendments and updates in accordance with the ever-changing business and regulatory environment. The listed companies might be exhausted in keeping alert to the updates of listing rules. We support the listed companies by providing information about the updates of listing rules and reviewing the client’s corporate governance structure, so as to ensure compliance with the Listing Rules.

Crisis Management

Crisis management is the process by which an organization manages and deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders. Due to recently unpredictability of global events, organizations should build up their business strategies to cope with potential changes and minimize the damage a crisis imposes.   AVISTA “CORE” approach aims to prepare companies for unanticipated crisis, develop re-engineering plan for enhanced operational efficiency in addition to the basis of internal control review and risk assessment with continued evaluation. A preliminary crisis diagnostic on the level of preparedness is provided to companies with the aid of our crisis preparedness assessment tool. To allow corporates to navigate through unexpected crisis, AVISTA helps develop a comprehensive crisis management plan enabling them to Prepare for, Respond to, Recover from, and be Resilient to crisis. Through the risk management and internal control systems review process, we explore and identify potential operation enhancement opportunities for companies. An in-depth risk-based organization change management review, featuring both external and internal factors, which is of fundamental importance to the sustainability of a business when it comes to changes, can further be conducted to re-engineer and streamline operation to prioritize resources, enhance productivity and minimize redundancy.

Due Diligence

Depending on situations and jurisdictions, due diligence review could either be a legal standard of care or voluntary investigation. It is typically used in mergers and acquisitions ("M&A"). Both the buyers and sellers could initial due diligence reviews, since both parties have the obligation to assure the legitimacy of the transactions. AVISTA provides different types of due diligence services, ranging from operational due diligence, financial due diligence, environmental due diligence to compliance due diligence.

Corporate Transaction Advisory

Throughout the mergers and acquisitions (“M&A”) process, AVISTA professional team can identify significant issues and provide clients with customized, practical and effective advice on management strategies by performing due diligence on a different aspect of the target company. Subsequently, we could assist the company to formulate an effective solution to facilitate the integration and interoperability between the acquired business and the group to maintain the consistency of operations and leadership.

Anti-money Laundering Compliance

Money laundering is a serious criminal offence under the Laws of Hong Kong. To combat the growing number and complexity of financial crime, regulatory authorities have issued regulations and guidelines on anti-money laundering (“AML”) and counter-terrorist financing (“CTF”), including but not limited to Drug Trafficking (Recovery of Proceeds) Ordinance (Cap.405), Organized and Serious Crimes Ordinance (Cap. 455) and Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615).   To meet the compliance obligation, AVISTA assists our clients in the design, establishment and implementation of a formal and effective AML/CTF mechanism by identifying and assessing the potential exposure towards risks related to money laundering and terrorist financing. To corporates which have already set up an AML/CTF programs, we could help to review and enhance the design and efficiency of the existing programs. Besides, we also provide services to assist clients to respond to the enquiries’ from the regulatory authorities and remediate related compliance failures.

IT Security and Advisory

IT security is the protection of computer systems and networks from the theft or damage of their hardware, software, or electronic data, as well as from the disruption or misdirection of service they provide. AVISTA experienced consultants could provide assistance in implementing the best IT security solutions where possible to fulfil your budget and requirements.   IT audit is the examination and evaluation of an organization's information technology infrastructure, policies and operations. IT audits determine whether appropriate IT controls have been implemented to protect corporate assets, ensure data integrity, and align with overall goals of the business. The scope of AVISTA's review services includes IT general control and application control. We could help you to fully utilize information technology to cope with your business strategy and vision, and at the same time ensure the compliance with relevant laws and regulations.