SW Hong Kong’s Gloria So highlights good governance as enabler of trust, reputation, success

She advised organisations to embed IT risk management into enterprise risk frameworks to strengthen controls.

Effective management and robust corporate governance are now critical drivers of long-term success in Hong Kong’s evolving business landscape, shaped by regulatory expectations, digital transformation, and ESG considerations.

Gloria So, Partner, Advisory Services at SW Hong Kong, provided expert insights. She has over 21 years of experience in enterprise risk management, internal controls, ESG report writing, information technology general control review, and financial due diligence. She specialises in Sarbanes-Oxley Act services, internal audit reviews, enterprise risk management, and strategic advisory engagements, and has provided internal control and ESG services to more than 60 listed companies and IPO projects.

Her expertise also includes developing and implementing review procedures and evaluating internal processes across diverse industries. So has served as a speaker for professional institutions and has published articles on topics such as ESG reporting and inside information in local Hong Kong newspapers and magazines.

As a judge at the HKB Management Excellence Awards 2025, So shared her perspectives on strengthening governance, internal controls, board practices, and sustainable leadership in today’s dynamic corporate environment.

With your extensive experience, how do you assess the current state of Hong Kong’s management and corporate governance landscape?

Hong Kong’s management and corporate governance landscape has evolved substantially in recent years, reflecting a stronger emphasis on transparency, accountability, and sustainable growth. Increasing regulatory expectations — particularly from the Hong Kong Stock Exchange and international investors — have encouraged companies to adopt more robust governance practices and align their operations with global best standards.

That said, there remains a wide spectrum of maturity across organisations. Larger corporations tend to have formalised governance frameworks and risk management functions, whilst smaller enterprises are still progressing in embedding governance concepts into daily operations. The encouraging trend is a growing recognition that good governance is not a compliance exercise but a strategic enabler of trust, reputation, and long-term success.

Looking ahead, environmental, social, and governance (ESG) has moved from a niche concern to a prominent boardroom issue. I believe integrating ESG considerations more deeply into board decisions, alongside enhanced board diversity and digital oversight, will continue to strengthen Hong Kong’s overall governance ecosystem.

As digital transformation accelerates, how can organisations strengthen internal controls and IT governance effectively?

Digital transformation brings tremendous opportunities and benefits for efficiency and innovation, but it also introduces new vulnerabilities and complexities in risk dimensions — from cybersecurity and data privacy to system resilience. To strengthen internal controls and IT governance, organisations must begin by embedding IT risk management into their enterprise risk management framework, rather than treating it as a standalone discipline.

Establishing clear accountability for IT governance at both the management and board levels is fundamental. Regular risk assessments, data protection audits, and cybersecurity stress tests help ensure policies are not only in place but effective in practice. Equally important is cultivating a culture of digital awareness — employees must understand that technology risk management is everyone’s responsibility.

Leveraging automation, artificial intelligence, and continuous monitoring tools can also enhance control effectiveness. However, technology should complement, not replace, sound governance principles such as segregation of duties, robust incident response planning, and transparent reporting lines.

What board practices and leadership qualities most effectively support long-term organisational stability and resilience?

Boards that consistently demonstrate long-term stability and resilience share several hallmark practices. They maintain a forward-looking perspective, balancing near-term performance with strategic foresight. They institutionalise regular board evaluations and succession planning to ensure continuity of stewardship and preserve corporate memory.

Effective boards foster transparent communication between management and directors, supported by high-quality data and independent assurance. They also ensure diversity — not only in gender or background but also in perspectives and expertise. This diversity strengthens decision-making, especially in volatile environments.

In terms of leadership qualities, resilience stems from integrity, empathy, curiosity, adaptability, and decisiveness. Leaders who encourage open dialogue, empower their teams to innovate, and remain calm and fact-based during uncertainty are those best positioned to navigate long-term challenges whilst sustaining stakeholder confidence.

What strategies should Hong Kong companies adopt to strengthen governance and internal controls whilst driving business growth?

Companies often view governance and growth as competing priorities, but in reality, they should reinforce each other. A sound governance framework enhances investor confidence, optimises resource allocation, attracts talent, and improves decision-making — all of which underpin sustainable growth.

To achieve this balance, companies should integrate risk management and control considerations directly into strategic planning and performance management processes. They should adopt a "risk and opportunity" mindset — understanding that strong internal controls can prevent costly setbacks whilst enabling agility and innovation.

Digitising control processes, enhancing data analytics capabilities, and building strong compliance cultures are key enablers. Leadership tone is also critical: when senior management communicates and demonstrates that control and ethical conduct are inseparable from commercial success, the organisation aligns around long-term value creation rather than short-term gains.

Looking ahead, what developments in risk management, ESG, or corporate governance do you expect to shape Hong Kong’s business landscape in the coming years?

Hong Kong’s business ecosystem will continue to be shaped by three converging developments: digital governance, climate resilience, and stakeholder accountability, moving from compliance exercises to strategic necessities.

First, in terms of risk management, as digital platforms, AI, and automation become integral to business models, data ethics, cybersecurity assurance, and algorithmic governance will demand greater oversight and disclosure, evolving to an integrated, forward-looking capability.

Second, evolving climate risk regulations aligned with global sustainability reporting frameworks — such as the IFRS Sustainability Disclosure Standards — will push organisations to quantify and disclose environmental risk more comprehensively.

Third, there will be increasing emphasis on stakeholder inclusiveness. Companies will need to demonstrate not only financial performance but also their contributions to workforce wellbeing, community impact, and ethical supply chains. I foresee boards playing a more active and immersive role in integrating ESG risk considerations into core corporate strategy, ensuring that financial health and social responsibility move hand in hand.

As a returning judge for the HKB Management Excellence Awards 2026, what core criteria will you apply when evaluating this year's nominees’ management practices, impact, and leadership?

As a returning judge, I will focus on three key dimensions: strategic vision, operational excellence, and positive impact.

Strategic vision involves how effectively leaders align their organisation's culture to long-term goals, innovate amidst uncertainty, and demonstrate adaptability in a rapidly evolving landscape. Operational excellence looks at process optimisation, digital enablement, governance integration, and risk management — indicators of disciplined yet agile management.

Lastly, impact extends beyond financial results. I will look for leaders whose decisions create enduring value for employees, customers, communities, and the environment. Whether it’s through transformative leadership, sustainable operations, or contributions to industry advancement, the most outstanding nominees are those who demonstrate that excellence in management is not about short-term success but about shaping positive legacies for the future.