Issue Date：July 28, 2021
The Company has established the “Risk Management Policy”, which was approved by the Board of Directors in 2020 as the highest guiding principle for the Company's risk management. Our management philosophy is "technology-based, sustainable management". In order to command the economic, social and environmental risks that the Company may face in its operations, the risk management team conducts risk factor identification to differentiate the relevant risks that may affect the sustainable development of the Company, defines risk management scopes, and monitors potential risks and implements preventive measures in accordance with the requirements of the latest internal audit development and standards in order to strengthen risk management, enhance crisis response capability, and achieve the goal of risk control, thereby promoting shareholder value, maintaining competitiveness, and laying the foundation for sustainable management.
In 2018, the Company reformed the risk management organization based on the organizational changes, and all of the risk management units were integrated into a “Risk Management Team”, which is affiliated to the ESG Committee. The chief financial officer leads the risk management team for conducting the identification and management of risk factors, to facilitate the organizational implementation of risk management and increase the efficiency of self-assessment and implementation.
Since 2017, the Company has actively promoted and put into practice a risk management mechanism. Since 2020, it has reported its implementation to the Board of Directors once every year. The reporting was performed on July 27, 2020. The following shows the implementation from every year:
In order to implement the inspection, analysis and identification of the related risks in the risk management category, and to respond to the risks in global economy, finance, environment and business operations, Coretronic had identified a total of 35 risk topics at the end of 2018, based on the aspects of corporate, finance, information technology, business operations, human resources and external factors. In the first stage, the top 20 risk topics are obtained from the survey questionnaire of “the most significant risk,” “the risks that had countered in the past 12 months,” and “the top five risks that may counter over the next three years“ by 140 mid-level and higher level managerial officers. The 27 directors who participated in the high-level meeting of the Group then chose the top 10 risk topics of Coretronic from these 20 risk topics.
In 2019, we will evaluate the possible response proposals for the top three risk topics, as well as stipulate management strategies and implement risk management.
|Top 10 Risk Topics|
|1||External factors – the rapid changes in technology and the industry|
|2||Enterprise – lack of innovation/unable to fulfill customers’ needs|
|3||External factor - economic downturn/slow recovery|
|4||External factor - increase of competition|
|5||Enterprise – implementation or strategy communication failure|
|6||Operations – discontinuity of the supply chain|
|7||Human Resources - difficult to attract and retain employees|
|8||Finance - exchange rate fluctuations|
|9||External factors - risk of product price|
|10||Operations - product recall|
|Environmental||Energy||The Environmental Safety Unit and Factory Affairs Unit have established the annual objectives, budgets, and plans based on the “Environmental Sustainability and Occupational Safety and Health Policies.” After they submitted them to the Environmental Protection Committee for review and approval, they follow the standards of the ISO 14001 Environmental Management System and ISO 50001 Energy Management System to perform the corresponding plans. For further information, please visit at "Energy Conservation and Carbon Reduction."|
|Emissions||In response to the impact and challenges posed by the climate change and implement related control measures in accordance with the “Greenhouse Gas Reduction and Management Act,” the Environmental Safety Unit and Factory Affairs Unit have established the annual objectives, budgets, and plans based on the goal of the “Green Factory,” and “Environmental Sustainability and Occupational Safety and Health Policies” After they submitted them to the Environmental Protection Committee for review and approval, they follow the ISO 14064-1 GHG Emissions Inventories standards to perform the four green action plans. For further information, please visit at "Energy Conservation and Carbon Reduction."|
|Social||Training and Education||Based on the operational needs, the Company combines theories with practices, helps employees fulfill their potential and cultivates talents. Therefore, the Human Resources Center and Talent Development Center have developed and implemented the annual plan based on the five development directions “Company Culture, Youth Empowerment, Internal Talent Training, Smart HR System, and Employer Brand.” For further information, please visit at "Learning and Development."|
|Occupational Health and Safety||For occupational safety, the Industrial Safety Unit has developed the annual objectives, budgets, and plans, and submitted them to the Occupational Health and Safety Committee for review and approval to verify the implementation of related strategies by the Occupational Health and Safety System based on OHSAS 18001. For occupational safety, the Health Management Department makes analyses of employees’ health problems based on the regular physical examination and plan appropriate health promotion activities. For further information, please visit at "ESH Management."|
|Governance||Socioeconomic Compliance||By establishing the governance organization and implementing the internal control mechanism, the Company ensures the compliance of all staff and their operations with related laws and regulations. For further information, please visit at "Governance."|
|Economic||Innovation Management||The outstanding R&D team continues to be innovative and dive into core technologies and key components. With the optical, electromechanical, thermal, software and system integration, and application capability, it provides innovative and comprehensive display system solutions for various applications. For further information, please visit at "Solutions."|