Corporate Governance and Sustainable Management

2. Risk Management

Our company's highest governing body for risk management is the Board of Directors. A Sustainable Development and Risk Management Committee has been established to handle risks related to regulations, company policies, organizational changes, and operational process modifications. This committee is responsible for creating internal regulations, detecting, identifying, and evaluating various risks, and formulating relevant countermeasures. These are then reviewed and overseen during regular operational meetings, with reports submitted to the Board of Directors on a regular basis. The Sustainable Development and Risk Management Committee uses a risk assessment matrix to qualitatively describe the severity of hazards and determine whether a risk is acceptable. It estimates the likelihood and severity to classify and evaluate risks. Issues classified as high-risk require the responsible department to propose improvement plans to reduce or eliminate the risk. For medium-risk issues, the relevant department must establish control measures to eliminate or manage the risk. For low-risk issues, existing risks are managed through the implementation of daily operational controls to prevent them from escalating.