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Risk Management Policies

Risk Management Policies and Procedures

Taiflex established the “Risk Management Policies and Procedures” on October 25, 2022. The Policies and Procedures have been approved by the Audit Committee and the Board of Directors, serving as references for business strategies which incorporate both qualitative and quantitative risk factors. The Company’s risk management policies identify risks associated with achieving the corporate objectives, establish and raise risk management awareness and level of execution, constantly keep abreast of internal and external issues as well as changes in the environment, and mitigate potential losses to contain risks within a tolerable level. The Company can thus safeguard the interests of its customers, employees and other stakeholders in order to boost shareholder value and achieve optimal allocation of corporate resources.

Scope of Risk Management

The Company attaches great importance to the environmental, social and corporate governance issues concerned by the stakeholders. Based on the scale, industry, business characteristics and operating activities of the Company as well as considerations for various aspects in sustainable development (including climate changes), the risks analyzed and identified include strategic risk, operational risk, financial risk, information risk, compliance risk, integrity risk and other emerging risks.

Structure of Risk Management Organization

The Chairperson is the convener of risk management planning, responsible for coordinating and directing the promotion and implementation of risk management plans. The “Corporate Governance and Risk Management” Task Force under the Sustainable Development Committee would regularly convene relevant meetings while management in different levels of organization would assist with risk factor identification and risk response strategies as well as propose relevant risk assessments, draft countermeasures and perform reviews in the meetings. The implementation status of risk management is then reported to the Sustainable Development Committee which supervises the execution of improvement mechanisms and at least once a year reports the implementation status of risk management to the Board of Directors.

The organizational chart of the Committee is as follows:

Implementation

To implement the risk management mechanism and achieve the goals of sustainable development, the “Corporate Governance and Risk Management” Task Force regularly convenes risk management meetings. Details of its operation in 2023 are as follows:

Date of Submission to the Sustainable Development Committee Content of Motions Date of Submission to the Board
2023.07.05 To review the risk map 2023.07.26
2023.12.20 2024 sustainable development plan 2024.01.25