Risk Management
The Group has established the Sustainability and Risk Management Committee as a functional committee under the Board of Directors, which reports its operational status to the Board of Directors once each year. The Sustainability and Risk Management Committee is the unit responsible for overseeing risk management activities and consists of three members, with at least half of the members being independent directors, and an Executive Secretariat has been established under the Committee.
Sustainability and Risk Management Committee
Risk Management Identification and Response Plan
The Group has established the “Risk and Opportunity Assessment Procedures” to ensure that the Company can effectively identify, assess, and manage risks and opportunities, and integrate risk control into daily operations, employee performance evaluations, and incentive mechanisms. The “Risk and Opportunity Assessment Procedures” clearly define the scope of risk management and the “Risk and Opportunity Identification and Assessment Process.” Quantitative assessments of risks and opportunities are conducted through the “Business Impact Analysis (BIA) and Risk/Opportunity Assessment Form.” After considering factors such as the quantitative impacts of individual risks on finance, operations, and brand reputation, as well as risk appetite and risk tolerance, the priority ranking of risks is determined and corresponding risk mitigation strategies are formulated.
Risk Management Scope
Risk Identification Results
Each year, the Sustainability and Risk Management Committee evaluates internal and external operational risks that may be faced by the Company and submits reports and response plans to the Board of Directors. The operational risk identification results for 2025 included risk factors such as information security, climate change, supply chain management, and labor shortages. Emerging risks included threats posed by quantum computing to traditional encryption algorithms and the risks of geopolitical factors to the Company’s investment and operations. To avoid duplication with information disclosed in other chapters, this section focuses only on the operational impacts and response measures related to emerging risks.
