Risk Management»Policies, Procedures and Scope»Risk Management Policies and Procedures

Risk Management Policies and Procedures

• The Company has established the "Risk Management Guidelines" and was approved by the Board of Directors in December 2020 as the guiding principles for risk management and to facilitate the identification, analysis, evaluation and control of operational risks. The Board of Directors is responsible for establishing and overseeing the risk management structure of the Group, including the Company and important production sites. The President is responsible for the development and control of the Consolidated Companies’ risk management policies and reports regularly to the Board of Directors on its operations.
• Under the Board of Directors, the Company has established the “Sustainability Steering Committee”, whose working group conducts short-term, medium-term and long-term risk identification, risk analysis, and risk assessment for environmental, social, and corporate governance aspects every year, and proposes improvement plans for high-risk items. Risk response is based on the assessment results and improvement plans, which are approved by the management representatives of each plant, agreed upon by the President, and submitted to the Board of Directors for approval, and then promoted and implemented accordingly, and reported regularly to the Board of Directors for the implementation of risk reporting and supervision.
• The most recent reporting date was December 20, 2023.

Scope of Risk Management

• The main objective is to mitigate the impact of risks on the enterprise, to ensure that the operational risks of the Group are under the scope of control, to enable the Group's overall operations to focus on business growth and operational efficiency, and to help safeguard shareholders' equity.
• Based on the risk events that occurred in the previous year and the opinions of external experts, the Group deliberates on the issues that may adversely affect the operations of the Company and the Consolidated Companies in the current year at the beginning of the period and use them as the basis for the overall assessment and risk ranking of operational risks in the following year. Planned risk control items then undergo proposed risk management measures after approval for overall monitoring or mitigation.
• The monitoring and control tools mentioned above include, but are not limited to, the use of self-risk management as a risk control/risk retention, or risk transfer/insurance.
• The Company's risk management procedures include risk identification, risk measurement, risk monitoring, risk reporting and disclosure, and risk response.