Risk Management Organizational Structure

The “ESG Risk Management Policies and Procedures” were endorsed by the board of directors. As part of this initiative, a dedicated risk management team will be established under the umbrella of Sustainable Development Committee. This team will delineate diverse risks in alignment with the company’s overarching operational policies.

Its aim will be to mitigate potential losses while remaining within an acceptable risk threshold. This endeavor is geared towards augmenting the company’s value and achieving the optimal allocation of company resources.

Risk Management Process

The company’s risk management process is carried out through the PDCA (Plan, Do, Check, Act) management measures. The specific process includes: risk identification, risk assessment, risk monitoring, risk reporting and disclosure, and risk response.

Risk Category Identification

Our company categorizes operational-related risks into four main aspects: Economic (including corporate governance), Environmental, Social, and Others. These risks are further divided into ten categories: Environmental Risk, Operational Hazard Risk, Human Resources Risk, Macroeconomic and Market Risk, Production Risk, R&D Technology Risk, Operational Risk, Financial Risk, Legal and Compliance Risk, and Other Risks.

Risk Management Strategy

Based on the risk identification results for the year 2023, 15 relevant risk management strategies have been summarized as follows: