To safeguard the interests of shareholders, implement sustainable development, fulfill the corporate governance, the management strategic and goals, and ensure the effectiveness, completeness and reasonableness of the risk management in relation to Phison Electronics Corporation and its subsidiaries, the Company establish the Risk Management Committee in November 2020 to serve as one of the functional committees under the board of directors. This committee regularly reports to the board of directors on its operations once a year.
The Risk Management Committee is the organization that comprehensively manages risk management activities. It consists of at least three members, one of whom serves as the convener, and at least more than half of the members are independent directors. All members have professional background in law, accounting or technology.
1. Board of Directors
The board of directors is responsible for the approval of the Policy, supervising the Company's existing or potential risks, and making reasonable resource allocation to ensure effective risk management and control.
2. Risk Management Committee
The Risk Management Committee is the organization that comprehensively manages risk management activities. It consists of at least three members, one of whom serves as the convener, and at least more than half of the members are independent directors. The executive secretariat is established therefrom and its responsibilities are as follows:
3. Executive Secretariat
Executive Secretariat is responsible for the implementation, promotion and coordination of the Company’s risk management activities, including arranging Committee’s meeting affairs, assisting the Committee in formulating risk management policies and procedures, communicating risk information with various operating units, collecting and integrating risk management reports of various operating units, etc. and matters designated by Committee.
4. Auditor
The Company’s Corporate Sustainable Development Committee is the auditor of the Committee. Auditor shall base on the spirit of independence to audit the Company's risk management affairs at least once a year, and report the audit situation to the board of directors.
5. Each Operating Unit
Each operating unit is responsible for implementation of the risk plan of such unit, including risk identification, risk analysis, risk assessment, risk response and control, and self-supervision. Each operating unit shall report to the Committee the implementation status of risk management related to various risks, on a regular basis or when required by the Committee.
The Company shall comprehensively evaluate the possibility and impact of various risks of daily business activities, and adopts appropriate countermeasures to continuously improve and reduce corporate risks. The Company's business risks can be categorized as operating risks, market risks, operational risks, information security risks, climate change risks, environmental security risks, risks of stable supply related to electricity and water resources, legal infectious disease risks, and other business-related risks. In order to ensure that various risks are controlled within a tolerable scope, the Company should set up summary and management indicators of various risks, which are regularly monitored by each operating unit.
Position | Name | Major (Education) Past Positions |
Independent Director | Wen Chiu Chung |
Master of Accounting, Chung Yuan Christian University Accountant of Grand Thornton |
Independent Director | Yu Lun Huang |
Associate Vice President for Academic Affairs Director, Center for Teaching and Learning Development Director, Center for Continuing Education and Training Associate Professor, Department of Electrical and Computer Engineering Secretary-in-General, Taiwan Open Course and Education Consortium |
Deputy Director of Legal Affairs Office | Chein-Hsun Chiu (Convener) |
Master of Law, Boston University Attorney at Law, N.Y. Deputy Director, Phison Electronics Corp. |
There are 3 members in the Risk Management Committee.
The term of the members of this committee is based on the principle of matching the term of the directors, and may be re-elected. The terms of this section of Risk Management Committee: November 5, 2021 to June 2, 2023.
On January 21, 2022, the Risk Management Committee reported the risk management results of 2021 and the work plan for 2022 to the Board of Directors.
2021 work focus:
Risk name |
Materiality to company |
2021 risk management and control results |
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Information Security |
Cyber-attacks and information outflow will affect the protection of internal and external intellectual information, causing serious problems such as interruption of company operations, financial damage, or illegal breach of contract. In the long run, it will cause major damage to goodwill and customer relationships, and affect the foundation of sustainable development of the company. |
Information Security Committee
Enhance information security defense capabilities
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Climate change management
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Water Rationing /Outage |
In order to ensure the normal operation of the factory, risk assessment methods are used to formulate relevant countermeasures to solve the problem of power and water shortages that cause operation interruptions |
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Power Rationing/Outage |
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Large-scale infectious disease outbreak |
In order to ensure the health of the company’s workers, risk assessment methods are used to formulate relevant countermeasures to prevent and avoid large-scale outbreaks of infectious diseases, resulting in operational interruptions. |
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ADD: No.1,Qun Yi Rd.,Jhunan,Miaoli, Taiwan 350
TEL: +886-37-586-896 #1019
Email: antonioyu@phison.com
ADD: No.1,Qun Yi Rd.,Jhunan,Miaoli, Taiwan 350
TEL: +886-37-586-896 #2622
Email: kuoting_lu@phison.com