Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION Year ended 31 December 2020 A. CORPORATE GOVERNANCE (CONTINUED) Internal Audit The Internal Audit Department ("IAD") reports to the Board Audit Committee and is independent of the Business Units and Support and Control Functions and Risk Management. IAD provides an independent assessment of the design, implementation and operating effectiveness of the Company's control environment and risk management processes using a risk-based audit coverage model and audit execution methodology developed from professional auditing standards. Internal Audit also reviews and tests the Company's compliance with internal guidelines set for risk management and risk monitoring, as well as external rules and regulations governing the industry. It effects these responsibilities through risk-based periodic reviews of the Company's processes, activities, products or information systems; targeted reviews of specific controls and activities; pre-implementation or initiative reviews of new or significantly changed processes, activities, products or information systems; and special investigations required as a result of internal factors or regulatory requests. Internal Audit conducts independent closure verification of significant Internal Audit and regulatory issues. Compliance The Company is committed to maintaining and upholding high standards of corporate governance. The Company has been in material compliance with the HKMA Module on "Corporate Governance of Locally Incorporated Authorised institutions" ("CG-1") issued under the HKMA's Supervisory Policy Manual ("SPM"). Financial disclosure policy The Company has in place the financial disclosure policy which is reviewed and approved by the Board of the Company. It sets out (a) the process and approach in determining the content, appropriateness, frequency, relevance and adequacy of the information disclosed, and (b) governance and oversight of the Company's disclosures for verifying or reviewing the accuracy of the information disclosed. 95 65

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