Corporate Governance

Risk Management Procedure and Organizational Structure

The “Critical Operational Risk Management Regulations” of the Company was approved by the board of directors in 2014. The “Critical Operational Risk Management Regulations” was established in accordance with the structure of the ISO 31000 standard, and such regulations are served as the operational rules for relevant organizations and supervisors at all levels of the Company to perform operational risk management. It was revised on November 6, 2023 and approved by the board of directors.

According to the Critical Operational Risk Management Regulations, the Company has established a Risk Management Committee in the organization in order to perform risk identification for all risks from the internal or external of the organization during the operation process that may cause major operational impact, operation interruption to the Company, or may affect the execution of important strategies, affect achievement of important goals, or may cause violation of laws/regulations, etc., and to perform risk identification, risk assessment, risk response and risk supervision operation along with process and detailed rules, thereby minimizing the probability of occurrence and impact of various types of critical operational risks.

The Company has established a Risk Management Committee with the President acting as the chairperson of the Organization in charge of directing the promotion and operation of risk management plans. Under such Organization, there are various center responsible units in charge of the promotion of various affairs and operations of risk management.

Scope of Risk Management

The risk management meetings of the Company are convened by the President regularly and irregularly for matters related to
(1) Business/Laws/Regulations/Standards
(2) Political Environment
(3) Economic/Financial Environment
(4) Natural Disaster and Climate Change
(5) Technology and Information
(6) Competition Environment
(7) Facility/Equipment
(8) Sales/Market Management
(9) Supply Chain
(10) Financial Operation
(11) Community/Environmental Safety and Health
(12) Internal and External Personnel of the Organization, etc.

There are a total of 12 major categories and 92 indicators for assessment, and mitigation responsive strategies, solutions and operation continuity plans are established to eliminate, reduce, transfer and accept risks, in addition to the enhancement of the pre-warning and monitoring capacity, promotion of risk identification and control, in order to implement appropriate risk management oriented business model, thereby achieving the operational goals and increasing values for shareholders and internal/external related parties.

Annual Operational Risk Management Execution Status

The second regular risk management meeting was held in 2023:
2023.04.10 Risk management regular meeting was convened. (U.S. – China trade and technique conflict / Ukrainian-Russia war and Taiwan strait conflict / ESG promote)
2023.10.18 Risk management regular meeting was convened. (China-own ASIC industrial development / Israel-Hamas war / Exchange Rate / Automotive demand leap /  worldwide natural disaster / low risk country production base)
2023.11.06 The 2023 operational risk management execution status was reported in the board of directors meeting.

 Risk Management Policy

Critical Operational Risk Management Regulations