Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 417

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 417
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 strategy; significant change initiatives including regulatory change; material regulatory obligations; compliance; anti-money laundering and sanctions; conduct, internal and external fraud; credit risk management; financial forecasting; regulatory reporting; enterprise wide risk management, operational resilience; Financial Reporting Council Corporate Governance reporting on material controls; model risk management; data management; technology resilience and cybersecurity; and incident and escalation management. In addition, Global Internal Audit will continue its programme of culture audits to assess the extent that behaviours reflect HSBC’s purpose, ambition, strategy and values. The annual audit plan and material plan updates made in response to changes in the Group’s structure and risk profile are approved by the GAC. The results of audit work, together with an assessment of the Group’s overall governance, risk management and control framework and processes are reported to the GAC, GRC and local audit and risk committees, as appropriate. This reporting highlights key themes identified through audit activity, and the output from continuous monitoring. This includes business and regulatory developments and an independent view of emerging and horizon risk, together with details of audit coverage and any required changes to the annual audit plan. Based on regular internal audit reporting to the GAC, private sessions with the Group Head of Internal Audit, the Global Professional Practices annual assessment and quarterly quality assurance updates, the GAC is satisfied with the effectiveness of the Global Internal Audit function and the appropriateness of its resources. In December 2024, Global Internal Audit’s External Quality Assessment Review was reported to the GAC, which concluded that Global Internal Audit is a well- respected, independent provider of assurance which is highly valued across the Group and that Global Internal Audit generally conforms with the 2017 International Professional Practices framework (’IPPF’), which includes the IIA Standards and Code of Ethics. ’Generally Conforms’ is the highest rating attainable and means the function is compliant with the requirements of the Standards in all material

| 298 | HSBC Holdings plcAnnual Report on Form 20-F |

Report of the Directors | Corporate governance report | Board committees

aspects. Global Internal Audit also generally meets the CIIA’s IA Financial Services Code of Practice requirements. Executive management is accountable for addressing the matters raised by Global Internal Audit, which must be addressed within an appropriate and agreed timetable. Confirmation to this effect must be provided to Global Internal Audit, which validates closure on a risk basis. Global Internal Audit maintains a close working relationship with HSBC’s external auditor, PwC. The external auditor is kept informed of Global Internal Audit’s activities and