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Risk Management Policy

In order to strengthen the corporate governance of the Company, create an operational environment for sustainable development and assist the Company to foster a corporate culture of risk management, the Company has established the “Regulations Governing Risk Management”, which was approved by the Board of Directors on August 6, 2021 as the highest guiding principle for the Company’s risk management.

Risk Management Areas

All levels of the Company’s risk management shall include the areas of operation, finance, climate change, compliance, work safety, personnel, business ethics and others, and amend timely when change of external environment and the Company’s internal policy.

Risk Management Organizational Structure

  • The Board of Directors

The Board of Directors is the highest unit of risk management of the Company, understand thoroughly risk of the Company’s business, pursue and implement risk management in order to establish an effective risk management mechanism.

  • The General Manager’s Office

The General Manager ‘s Office is responsible for handling and reviewing the execution of risk management.

  • The Audit Department

The Audit Department is responsible for monitoring and suggesting improvements properly in order to ensure thorough implementation of risk management. It shall examine the Company’s compliance with the regulations and prepare audit reports and submit to the Audit Committee and the Board of Directors.

  • Department’s supervisors

Department’s supervisors are responsible for risk analysis, monitoring and disseminating risk management policy in order to ensure thorough implementation of risk management.

  • The members from the business functions and the subsidiary

The members from the business functions and the subsidiary are responsible for identifying relevant risks of the Company and implementing risk management activities in accordance with the regulations, so as to mitigate the identified risks.

Implementation Status

The Company shall submit the execution of risk management to the Board of Directors at least once every year. Main implementations in recent years include:

Year
Summary
Implementation Status
2021
  • The Company has established the “Regulations Governing Risk Management”, which was approved by the Board of Directors on August 6, 2021.
  • 2022
  • The Company has reported the execution of risk management of 2021 to the Audit Committee and the Board of directors the risks on August 9, 2022.
  • 2023
  • The Company has reported the execution of risk management of 2022 to the Audit Committee and the Board of directors the risks on February 21, 2023.