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 ISO31000 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. In 2019, the Risk Identification Matrix, Operational Risk Checklist were revised, and the assessment of intellectual property risk was additionally included.
According to the Operational Risk Management Regulations, the Company has established a Risk Control Team 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 Organization 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 88 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 2022:
2022.03.30 Risk management regular meeting was convened. (U.S.-China trade war/Russo-Ukrainian War/China lockdown/GHG emission/COVID-19 response)
2022.09.28 Risk management regular meeting was convened. (slowing market demand/operations cost affected by inflation situation/ESG and carbon tax/COVID-19 response)
2022.11.07 The 2022 operational risk management execution status was reported in the board of directors meeting.
2020.09.30 Risk management regular meeting was convened.