As today’s businesses often need to do more with less, digital enablement is playing a crucial role in streamlining your compliance efforts across various areas. Notably, board effectiveness assessments are becoming an increasingly important priority. This is emphasised by the Stock Exchange of Hong Kong Limited's ("HKEX") announced amendments to the Corporate Governance Code and related Listing Rules. These amendments will come into effect on 1st July 2025 and apply to Corporate Governance Reports and annual reports in respect of financial years commencing on or after 1st July 2025. The amendments mandate board performance reviews to be conducted at least once every two years, with specific disclosures required in the Corporate Governance Reports.
Corporate
Governance
- Demonstrate the Board’s accountability
- Monitor the Board’s performance
- Safeguard minority interests
- Reinforce ethics and integrity
Stakeholder
Expectations
- Build trust by providing transparent disclosure
- Ensure the Board is attuned to stakeholder concerns & market expectations
Regulatory
Compliance
- Meet the regulatory requirements and expectations for board oversight
- Ensure compliance with governance codes and standards
Strategic Alignment
& Value Creation
- Ensure the Board remains focused on its long-term mission and vision
- Encourage the Board to drive long-term strategic planning
Our Board Advisory Service Methodology
Our KPMG Board Advisory Service Methodology builds on global best practices and has been tried and tested globally. Our Methodology includes 4 assessment criteria and 5 performance activities:
4 assessment criteria:
Strategy and Performance
Leadership and Culture
Roles and Responsibilities
Compliance and Oversight
5 performance activities:
01
Questionnaire
Self-assessment questions based on requirements, best practices and common issues
02
Interviews
Allow further exploration and clarification of the responses, providing comprehensive recommendations
03
Comparative analysis
Against industry benchmarks to identify opportunities for improvement.
04
Report on results
Summarise the qualitative and quantitative analysis results and our findings
05
Recommend-ations
Action plan based on the results, aimed at enhancing board effectiveness
How KPMG can help
We can help you deliver a board effectiveness assessment using our digitalised tool, the KPMG Board Effectiveness Self-Assessment Platform ("the Platform"). We can support you throughout the activities outlined on the previous page, with:
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Digital & customised surveys built using our methodology |
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Secure & anonymous responses via self-service platform |
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Independent and objective assessments for boards, committees & directors |
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Board composition analysis & skill matrix development |
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Benchmarked results against our market insights |
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Supported by global insights from KPMG’s Board Leadership Centre |
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User-friendly functionalities and repeatability for year-on-year comparison |
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Presented in visually impactful, easy-to-interpret dashboards |
Here are some illustrations of the Platform and reports:
Our flexible service offerings
We offer two flexible approaches for assessing board effectiveness, each tailored to different levels of depth and complexity. Choose the option that best suits your organisation’s resources, culture, and specific assessment goals.
Assessment leveraging KPMG Board Effectiveness Self-Assessment Platform
- A Board self-assessment questionnaire will be electronically distributed to directors for statistical analysis to identify gaps and priorities as perceived by the Board, with data collected over a three-year period for year-on-year comparisons.
- The follow-up interviews will be arranged with selected Board members in the first year (as required) to delve deeper into the questionnaire results for additional insights.
- In addition, certain metrics will be compared against those of peer organisations for benchmarking analysis.
The results are summarised in a written report, featuring easy-to-read dashboards for presentation to the Board.
Integrated external assessment by KPMG
The integrated approach consists of:
- Desktop review of key Board documentation and existing governance framework, structure and processes; and
- Observation of Board/ committee meetings (as required)
A comprehensive written report will be issued, detailing the strengths and areas for development of the Board, along with other observations and recommendations regarding governance for your consideration.
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