Risk Management



The Company has established a Risk Management Committee, which is a functional committee under the Board of Directors and reports its operating status to the Board of Directors once a year. The Risk Management Committee is a unit that comprehensively oversees risk management activities. It is composed of three members (at least half of the members are independent directors) and has an executive secretariat.

The company has established a "Risk Assessment and Opportunity Procedure" to ensure that the company can effectively identify, assess, and manage risks and opportunities. It integrates risk control into daily operations, employee performance evaluations, and incentive mechanisms. The "Risk Assessment and Opportunity Procedure" provides detailed definitions of the risk management scope and the "Risk and Opportunity Identification and Assessment Process." It uses the "Business Impact Analysis (BIA) and Risk / Opportunity Assessment Form" to quantitatively evaluate risks and opportunities. After considering the quantitative impact of individual risks on finance, operations, and brand, as well as risk appetite and risk tolerance, the procedure determines the priority of risks and formulates corresponding risk mitigation strategies.

Risk Management Committee

Risk Management Identification and Response Plan

Risk Management Scope

Risk Identification Results

The Risk Management Committee assesses the internal and external operational risks that the Company’s operations may face on a yearly basis, and submits reports and response plans to the Board of Directors. The operational risk identification results in 2023 include information security, climate change, supply chain management, labor shortage and other risk factors. Emerging risks include the international net-zero trend and renewable energy risks, and the geopolitical risks in company investment and operations. Please see the ESG Report for details.