Risk Management Policy and Procedures
The Company formulated the “Risk Management Policy and Procedures”, which was approved by the Board of Directors in 2020, as the highest guiding principle for its risk management. The full policy is disclosed in the Major Internal Policies section.
Risk Management Cycle and Scope
The Company establishes a clear division of responsibilities and a comprehensive risk classification to ensure that various types of risks at different levels are accounted for during the risk identification process. The company categorizes risk management into the following categories based on the principle of materiality: Hazard Risks, Strategic and Operational Risks, Financial Risks, Compliance/Contract Risks, Other Risks.
Risk Management Framework
Operation Status of Risk Management
Each department shall identify risks based on its actual business operations and establish evaluation mechanisms and control indicators. The audit office assesses the effectiveness of risk management to ensure the implementation and compliance of the system, and reports the audit results to the Board of Directors annually.
On August 12th, 2024, a risk management assessment report was presented to the Audit Committee and the Board of Directors, covering risk assessment, control measures, and compliance operations.
