RISK MANAGEMENT POLICIES AND PROCEDURES
Purpose
In order to manage risks that the company may face various internal or external uncertainties in the course of operation, and ensure stable operation and sustainable development, the "Risk Management Policies and Procedures" are formulated and approved by the board of directors.
Risk Management Organizational Structure and Responsibilities
I. Board of Directors:
The Company's board of directors is the highest unit of corporate risk management. It aims to comply with laws and regulations, promote and implement the company's overall risk management, understand the risks faced by operations, ensure the effectiveness of risk management, and bear the ultimate responsibility for risk management.
II. Audit Committee:
The committee assists the board of directors in performing risk management responsibilities, reviews risk management policies, procedures, and implementation, reviews their applicability and execution effectiveness, and puts forward necessary suggestions for improvement.
III. General Manager's Office:
The general manager's office is responsible for risk management and is responsible for drafting, analyzing and monitoring related risks and execution reports to ensure the effectiveness of risk control mechanisms and procedures.
IV. Various business units:
The management of each business unit should make every effort to make each employee understand the importance of risk management, carefully evaluate and discover possible risks in the promotion of various businesses, strictly abide by the various risk management systems formulated by the company, and effectively control the risks arising from the execution of various businesses within the scope of authorization.
Risk Management Process and Scope
The company's risk management mainly considers various types of risks based on risk management practices, materiality principles, and identification of exposed risk factors, and properly manages them in accordance with monitoring, disclosure, reporting, and management procedures. Summarize possible risk types:
Review Aspect | Risk Type | Risk Factor (Including but not limited to the following factors) |
---|---|---|
Corporation Governance | Regulation Compliance |
|
Society | HR Risk |
|
Product Safety / Occupational Hazard Risk |
| |
Economy | Strategy / Policy Objective Risk |
|
Information Risk |
| |
Financial Risk |
| |
Environment | Environmental protection (Climate Change and Natural Disasters) |
|
Others | External Factors Risk |
|
Risk Monitoring / Management
Each business unit monitors the business risks of its subordinate departments, and proposes countermeasures, and communicates and reports to the risk management authority and responsibility unit from time to time for management reference.
Disclosure of Risk Information
In addition to disclosing information in accordance with the regulations of the competent authority, the company also discloses information related to risk management in its annual report and website.
Execution Operation
In 2023, based on risk management practices and the principle of materiality, the company will conduct operations related to the environment, society/economy and corporate governance of the company's operations as follows:
Material Issue | Risk evaluation | Execution of Risk Management Operations |
---|---|---|
Environment | Environmental protection |
|
Society / Economy | Product Safety / Information Risk |
|
Corporation Governance | Regulation Compliance |
|
After the completion of the implementation at the end of each year, the company will regularly (at least once a year) report the implementation of risk management operations to the board of directors before the first half of the next year.
The implementation of risk management operations in 2023 will be reported to the board of directors on January 30, 2024.