Risk Management

Risk Management

Risk Management Policy

To manage the uncertainties that may threaten the company's business operations, the company has established a Risk Management Policy, which was approved by the Board of Directors. This policy defines various types of risks in line with the overall operational guidelines and strategies, and establishes a management mechanism for risk identification, assessment, mitigation, and effective monitoring and review. The goal is to avoid or minimize the impact of risk events on the company's operations, ensuring the sustainable development of the business.

Scope of Risk Management

To establish a comprehensive and robust risk management framework, the company identifies the following risks: information security risk, environmental, health and safety risk, operational risk, quality management and operational risk, financial and market risk, climate change risk, and others.

Risk Organizational Management Structure

• Board of Directors and Audit Committee：
  The Board of Directors is the highest decision-making body for the company’s risk management, responsible for approving the company’s risk management policies, framework, and establishing a risk management culture throughout the organization. The Board bears ultimate responsibility for overall risk management. The Audit Committee is responsible for regularly reviewing the company’s risk management procedures and overseeing the implementation of risk management across the organization, ensuring effective risk control. A Risk Management Team is established under the Audit Committee, with the General Manager serving as the convener.
   

• Internal Audit Department：
  Focus on internal audit work related to significant risks defined by the risk management unit, while also auditing the company's risk management processes. Ensure the effective implementation of internal controls and track the improvement of identified deficiencies, providing timely reports to the Board of Directors.

• Risk Management Group ：
  The Risk Management Team, under the General Manager's Office, is responsible for the planning and design of the company's risk management system, capital allocation discussions, establishment of risk measurement frameworks, review, integration, and monitoring of various risk control operations, and regularly reports to the Audit Committee and the Board of Directors.

Operational Status

The company reported the status of its risk management operations to the Board of Directors on November 5, 2024.