Issue Date:July 28, 2022
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.
The “Risk Management Team” led by the CFO integrates all risk management units under the ESG Committee to identify risk factors and control risks to make the command, dispatch, self-assessment, and duty implementation of the risk management organization more efficient. The risk management organizations at all levels and their duties as follows:
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:
Top 10 Risk Topics in 2021 | |
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1 | External factors – the rapid changes in technology and the industry |
2 | Operations – discontinuity of the supply chain |
3 | Human Resources - difficult to attract and retain employees |
4 | Enterprise – lack of innovation/unable to fulfill customers' needs |
5 | External factor – Pandemic Spread / Health Hazard |
6 | External factor - economic downturn/slow recovery |
7 | External factor - increase of competition |
8 | Human Resources – lack of employees |
9 | External factor – political risks / uncertainty |
10 | Enterprise – implementation or strategy communication failure |
Topic | Item | Strategy |
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Environmental | Climate Change | Investigate the financial risks of climate change through the climate change risk questionnaire, and then set and plan annual goals, budgets and plans by the environmental safety and plant management units. After submitting to the Environmental Protection Committee for review, the corresponding plan will be implemented in accordance with ISO 14001 environmental management system, ISO 14064-1 greenhouse gas inventory standard, and ISO 50001 energy management system. |
Social | Labor-management Relations | Conducted through diverse and smooth two-way communication channels, e.g: holding quarterly labor-management meetings and annual business executive communication meetings to strengthen labor-management relations. |
Occupational Health and Safety | For occupational safety, the occupational safety unit sets and plans annual goals, budgets and plans, and submits them to the Occupational Safety and Health Committee for review to implement relevant strategies through ISO 45001 verification of the occupational safety and health management system. For occupational health, the Health Management Department analyzes the health problems of colleagues through the results of regular health examinations, and plans appropriate health promotion activities. It has also established a group pandemic prevention team for COVID-19 to implement relevant pandemic prevention policies. | |
Information Security | Taking ISO 27001 as the reference standard, the Company has established an Information Security Committee and formulates information security policies according to the actual management needs of the Company. In response to actual needs and development trends, it formulates corresponding information security strategies and visions to improve the information security protection system. A safe and trustworthy information security environment is thus established through a risk-oriented security protection mechanism, supplemented by continuous training and enhancement of employees' information security awareness. | |
Governance | Socioeconomic Compliance | By establishing a governance organization and implementing internal control mechanisms, we ensure that all personnel and operations actually comply with relevant laws and regulations. |