In order to improve corporate governance, implement risk management for business operations, and carry out risk management for uncertainties that may threaten the Company’s operations, the Company’s Sustainability Committee and Board of Directors approved the “Risk Management Policy and Procedures” in August 2023, which mainly include risk management policies and culture, risk management organization structure and responsibilities, risk management processes, risk information disclosure, and risk management aspects in order to effectively control the risks generated from business activities, and to report to the Sustainability Committee and the Board of Directors at least once a year on the status of the operation of risk management in the current year.
Risk management performance in 2023
The Sustainability Office meets regularly each year to communicate risk information with each operating department, collect and organize risk management reports from each operating department, and report to the Sustainability Committee and the Board of Directors on the implementation of risk management for each risk. The last report to the Board of Director was made on November 2, 2023.
Implementation (August 3 to September 30, 2023)
The table below shows the five risk factors prior to the results of the risk assessment conducted in 2023:
1. Review of compliance and contractual conditions by the executing and countersigning departments
2. Enforcement of compliance and contractual conditions by the executing department
|Enforcement departments responsible for fulfilling compliance and contract conditions submit improvement reports on their breaches and violations
|Annual monitoring to reduce compliance and contract risks
|Functional performance of the product meets the specification risk requirements
|Fully understand the needs of clients
|Develop products meeting the needs of clients
|Carry out quarterly monitoring to learn about the product functions and client needs
|Risk of intellectual properties/information loss
1. Apply for patents for inventions created by the Company and continue to protect the patent rights in line with corporate needs.
2. Cloud-based control of R&D department data
|Introducing the TIPS management system
|To obtain TIPS certification in 2024
|During the year, we completed an equity investment of a start-up IC design company, which became a member of the Group's subsidiary, to enhance integration and accelerate to play a synergistic role.
1. After the completion of the equity investment, we will assist in investing the back-end resources to strengthen the integration.
2. We will optimize the layout of operations, R&D efficiency, and marketing and sales to enhance overall competitive advantage and revenue scale.
|Monthly monitoring to increase the Company's product portfolio, contributing to revenue and profitability
|R&D technology risk
|Strengthening the technical capability of R&D personnel
|Introduction of external R&D technologies
|Quarterly monitoring to achieve the R&D technology that meets the needs of customers