Chicony has established a "Risk Management Policy", which was approved by the Audit Committee and the BOD in 2021. In accordance with the three lines of defense in risk management, the
Company has established a risk management division framework. The BOD serves as the highest decision-making body, while the President acts as the convener of the risk management plan. The
operational status of risk management is reported to the BOD regularly, with the 2024 operational status presented to the Board in November 2024.
Risk Management Framework
2024 Major Risk Identification and Response Measures
| Responsible Unit | Risk Category | Potential Risks | Control Strategy and Response Measuresfor 2024 |
|---|---|---|---|
| Financial and Administrative Department | Financial Risk | Exchange Rate Fluctuation Risk | To hedge the risk of holding foreign currency, forward foreign exchange transactions are used to reduce foreign currency exposure. |
| Computer Center | Information Risk | Risk of Data Encryption Ransomware | Please refer to Information and Privacy Security |
| Administration Department | Man-made Disaster | Fire | Conduct annual fire prevention awareness and training; regularly report inspection results of fire safety equipment; conduct fire drills and training; perform quarterly infrared scans and improvements on electrical panels at all sites to ensure electrical, construction, and operational safety, thereby reducing the likelihood of fire incidents. |
| Natural Disaster | Earthquakes, Heavy Rain, Typhoons | Continue conducting earthquake preparedness and drills; implement preparations and preventive measures for heavy rain and typhoons; strengthen earthquake, flood, typhoon, and power outage countermeasures; establish a response team and operate according to emergency response SOPs. | |
| Environmental Risk | Environmental Burden | Refer to Smart and Green Manufacturing | |
| Occupational Safety and Health Risks | Implementation of a Risk Management System | Please refer to Workplace Safety and Health | |
| Business and Management Units | Operational Risk | Refer to the Company's annual report | |
