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      Risk Management

      Risk Management Policies and Procedures

       

      The company established the "Risk Management Methods and Procedures," which were approved by the Board of Directors in 2024, as the highest guiding principle for the company's risk management. The company conducts an annual risk assessment and formulates risk management policies for various risks. These policies encompass the scope of risk management, organizational structure, and procedures to effectively identify, measure, and control the risks associated with the company’s business activities, ensuring that risks remain within acceptable limits.

       

      Scope of Risk Management

       

      This policy manages all potential risks that may impact the company's operations and profitability, including strategic, operational, financial, and hazard-related risks. The scope includes, but is not limited to:

      • Operational risks
      • Market risks
      • Environmental and workplace safety risks
      • Financial risks
      • Human resources risks
      • Climate change risks

       

      Risk Management Organizational Structure and Responsibilities

       

      The company’s risk management organization is led by the Board of Directors and the Audit Committee, which serve as the highest supervisory units for risk management. The General Manager acts as the convener of the Risk Management Task Force, promoting and implementing comprehensive risk management within the company. Department heads actively participate in the process, drafting and executing risk management plans tailored to their respective functional areas. The main responsibilities are as follows:

      1. Formulating risk management policies and related measures, and submitting them to the Board of Directors and the Audit Committee.
      2. Establishing operational mechanisms for risk management, reviewing their effectiveness, and making improvements as needed.
      3. Assisting and monitoring the risk management activities of various units and ensuring the effective execution of internal control procedures.

       

      Risk Management Operations

       

      The company holds regular meetings and reports the status of risk management operations to the Audit Committee and the Board of Directors at least once a year. The details of these operations include:

      • Conducting regular meetings to discuss risk management issues, including assessing the company’s exposure to various risks (e.g., market risks, natural disasters, engineering hazards, emerging infectious diseases, environmental safety, supply chain risks, financial risks, information security risks, and human resources risks).
      • Evaluating risks, executing strategies, and assessing the impact on the company’s profitability.
      • Reporting the operation status of risk management strategies to the Audit Committee and the Board of Directors on March 5, 2025.