Risk Management Policies and Procedures

To strengthen our company's corporate governance, ensure the integrity of the risk management system, and serve as the basis for various risk management and execution, our company's "Risk Management Policy and Procedures" were approved and established by the Board of Directors in December 2020, to serve as the highest guiding principle for our company's risk management. This improves the effectiveness of risk management division of labor and reasonably ensures the achievement of the company's medium and long-term strategic planning and goals.

Our company regularly identifies and assesses risks every year, proposing response measures for various risk factors, covering management objectives, organizational structure, responsibility attribution, and risk management procedures, and implementing them effectively to identify, measure, and control the various risks of the company. This keeps the risks generated by business activities within an acceptable range.

Our company identifies potential risks that may affect sustainable development and selects the scope of risk management. In accordance with the latest internal audit developments and guidelines requirements, we monitor potential risks and implement preventive measures to strengthen risk management, enhance crisis response capabilities, achieve risk control objectives, and ultimately promote shareholder value, maintain competitiveness, and establish a foundation for sustainable business operations.

Risk Management
This risk management policy covers various types of risks faced in the course of operating activities, including "hazard event risk", "operational risk", "financial risk", "strategic risk", "compliance risk" and "other risks".

Organizational Structure

The risk management organizational structure of our company includes the Board of Directors, Audit Committee, Internal Audit Office, Risk Management Team, and various related units.

Operating conditions

Since the issuance of our company's risk management policy in 2020, it has served as the highest guiding principle for our company's risk management. We actively promote the implementation of risk management mechanisms and report their operational status to the Board of Directors at least once a year.

2022:

1. On March 3, 2023, we reported to the Board of Directors on the execution status of the risk management for the 2022 fiscal year.

2. In July 2021, the management representative convened a meeting with relevant unit managers to conduct an SOWT analysis of the organization, and produced an enterprise SOWT analysis table and a table of organizational environmental issues and risk management countermeasures. The management representative will convene meetings with department heads to discuss and propose risk response measures and plans for significant issues in the table of organizational environmental issues and risk management countermeasures, in order to address threats and enhance opportunities and reduce operational risks.

File Download

▸ Risk Management Policies and Procedures.pdf

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