Risk Management

Risk Management Policies and Procedures

The company’s “Risk Management Policies and Procedures” were approved by the board of directors on November 10, 2023, as the company’s highest guiding principle for risk management. The company regularly evaluates risks every year and formulates risk management policies for each risk. Through a complete risk management structure and integrated into operational activities, various risks that may arise can be controlled within tolerable limits to ensure the achievement of the company’s strategic goals. At the same time, risk management, organizational structure, authority and responsibility, and risk management procedures are also established The mechanism operates effectively.

Risk management scope

The company’s risk management includes the management of “strategic risks”, “operational risks”, “financial risks”, “information risks”, “legal compliance risks” and “other risks”.

Organization

The Board of Directors is the company’s highest responsible unit for risk management, approving risk management policies and related regulations, supervising the overall implementation of risk management, and ensuring effective risk control. In order to assist the board of directors in performing its risk management responsibilities, the audit committee has established a risk management group. The risk management group is the responsible unit responsible for implementing risk management. The administrative general manager serves as the convener and leads the top managers of each unit to conduct analysis of the company’s operational risks and emerging risks. Comprehensive assessment operations.
Risk management team structure chart

Operational situation​

The Company regularly reports risk management operations to the Board of Directors. The contents of the report are as follows:
The company formulated “Risk Management Policies and Procedures” on November 10, 2023, and formed a “Risk Management Team” composed of heads of departments. It is expected to hold two meetings every year to identify risks and promote risk management. Risk control is currently being implemented. The matters are briefly described as follows:
  • Strategic risk: Conduct an analysis of the impact of global economic changes on major customer markets, and expect to use the analysis results as a reference for the company’s product design and development blueprint. This strategic risk assessment will continue.
  • Operational risk: Explore the global inventory and sales status of major customers as the basis for the company’s raw material strategic preparation, purchase, product production and inventory management, with the purpose of shortening the business cycle and avoiding the risk of funds hoarding in efficient inventory.
  • Financial risk: Analyze the aging and quality of accounts receivable from our customers to ensure that customers have sufficient liquidity to pay our accounts and avoid financial risks through accounts receivable insurance products.
  • Information risk: In order to implement information security management and strictly manage the use and security maintenance of data, the company has appointed a professional team “NewSoft International Technology Co., Ltd.” to regularly assist in performing information security assessments to reduce the company’s information security risks.
  • Legal compliance risks: Carefully review the company’s contracts and management, explore the legality of the contracts and their impact on the company’s financial status, and also review intellectual property and related equity contracts.
  • Other risks:
    1. In order to prevent the impact of sudden disasters on the company’s operations, the company established a disaster emergency response team and a self-defense firefighting group in 2023, and completed employee fire education training and promotion on November 24, 2023 to enhance the company’s colleagues’ response capabilities and Proficiency in disaster prevention.
    2. Our company purchased a one-year employer’s accident liability insurance on September 11, 2023 to cover the employer’s compensation liability for employees and reduce the company’s compensation risk when an employee has an accident.