Description of the business: -

Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured to a joint-stock limited company. On 27 October 2006, the Bank was successfully listed on both Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited. Through its continuous endeavor and stable development, the Bank has developed into the leading bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank regards service as the very foundation to seek further development and adheres to creating value through services while providing a comprehensive range of financial products and services to 8,098 thousand corporate customers and 650 million personal customers. The Bank has been consciously integrating the social responsibilities with its development strategy and operation and management activities, and gaining wide recognition in the aspects of promoting inclusive finance, supporting targeted poverty relief, protecting environment and resources and participating in public welfare undertakings.

The Bank always keeps in mind its underlying mission of serving the real economy with its principal business, and along with the real economy it prospers, suffers and grows. Taking a risk-based approach and never overstepping the bottom line, it constantly enhances its capability of controlling and mitigating risks. Besides, the Bank remains steadfast in understanding and following the business rules of commercial banks to strive to be a century-old bank. It also stays committed to seeking progress with innovation while maintaining stability, continuously enhances the strategy of mega retail, mega asset management, mega investment banking as well as international and comprehensive development, and actively embraces the internet. The Bank unswervingly delivers specialized services, and pioneers a specialized business model, thus making it "a craftsman in large banking".

The Bank was ranked the 1st place among the Top 1000 World Banks by The Banker, ranked 1st place in the Global 2000 listed by Forbes and topped the sub-list of commercial banks of the Global 500 in Fortune for the seventh consecutive year, and took the 1st place among the Top 500 Banking Brands of Brand Finance for the fourth consecutive year.

Description of the business objectives: -

The vision: Build a world-class and modern financial enterprise with global competitiveness by adhering to the principles of delivering excellence, sticking to the source, customer favourite, leading in innovation, security and prudence, and people-oriented.

The advantages:

Description of the risks to the business objectives: -

The first step to defining risk management goals and risk management objectives is to define your organization's shared vision. Once the shared vision is articulated, overall risk management goals and objectives must be defined.

Investment. With respect to RMB bond investment, the Bank considered the investment value, yield rate and comprehensive contribution of bonds in each type as a whole before scaling up investments in high-value bonds; as per the bond issue plan, it coordinated efforts to forestall investment value and interest rate risks, and control the holistic interest rate risk of each investment portfolio by arranging the term structure reasonably. In terms of foreign-currency bond investment, the Bank worked hard to study and predict market trends, carried out investment activities in more places and currency types, lengthened terms to a proper extent, and scaled up investment volume at a steady pace.

ICBC Credit Suisse Asset Managementactively served the real economy and diverse customer demands, and managed to improve the business structure continuously and enhance the quality and efficiency steadily.ICBC Leasingendeavored to improve its ability to provide professional and integrated financial services and continued to pursue transformation to high-quality development while fortifying the groundwork for risk management and control.ICBC-AXAmade solid progress in business transformation and enhanced professionalism in investment. It managed to embrace healthy business development on all insurance fronts based on the Group's channel advantages, recording the strongest performance by a number of operating indicators.ICBC Internationalcontinued to unleash its growth potential, showing continuous enhancement of market competitiveness and steady improvement in operation effectiveness and asset quality across its four major businesses, i.e. investment banking, sales and trading, investment management and asset management.ICBC Investmentfocused work on the strategic plans for supply-side structural reform and strengthened coordination with the Group. It diversified fundraising channels, strengthened enterprise risk management and control, pursued market-oriented debt-for-equity swap business in a proactive and prudent manner and kept improving the quality and efficiency of serving the real economy.ICBC Wealth Management, as the first banking wealth manager approved, was among market leaders in terms of business qualifications, product migration and IT system building. As guided by the New Rules on Asset Management, ICBC Wealth Management rolled out over 350 characteristic products.ICBC Technologysuccessfully opened for business in Xiongan New Area. The setup of ICBC Technology represented the Banks' strategic move to build a smart bank relying on the nature of finance and leveraging on the Bank's strengths in FinTech and integrating innovation capabilities.

Explanation of the controls to manage the risks: -