The company has conducted a risk assessments of environmental, social and corporate governance issues .The risk management policy is based on the company’s overall operating policy, and defines various risks, and establishes a risk management mechanism for early identification, accurate measurement, effective supervision and strict control, to prevent possible losses within the tolerable risk range, based on internal and external environmental changes, and continues to adjust and improve the best risk management practices to protect the interests of employees, shareholders, partners and customers, and to increase company value, and achieve the optimal principle of company resource allocation.
Organization structure and responsibilities.
- The board of directors: The board of directors of the company is the highest unit of company risk management. It aims to comply with laws and regulations and promote and implement the Company's overall risk management. It should clearly understand the risks faced by operations to ensure the effectiveness of risk management.
- Internal audit: It checks whether the risk control of each business unit is actually implemented according to the audit plan, and prepares an audit report based on the audit results and tracks and improves it.
- Business units: The main responsibility of each business unit is to measure and monitor the relevant risks within the unit to ensure that risk control mechanisms and procedures can be effectively implemented.
Risk management operation situation:
The Company regularly reports on its risk management operations in the previous year in the fourth quarter of each year. The scope of the Company's risk management for the current year includes, but is not limited to, market risk, environmental risk, investment risk, information security risk or other risks that may cause significant losses. The risk management team evaluates key risk items based on the principle of materiality. Important risk categories and response measures are as follows:
|Type||Impact on Operation||Response Strategies|
|Environmental Risk||The impact of climate change and natural disasters on greenhouse gas emission management, energy management, and compliance with environmental laws and regulations.||Set up a green energy team to promote solar energy, energy saving and carbon reduction, waste treatment, research and development of RoHS-compliant products and continuous ISO14001 and IECQ QC080000 certification, etc. Facing the possible impact and response of climate change, the concept of green production is implemented in production management|
|Market Risk||Domestic and foreign economic, technological changes, industrial changes and other factors have an impact on the company's finance and business.||The company continues to pay attention to global market changes, develop niche products, continuous terminal certification to face environmental changes. Pay attention to laws and policies that may affect the business and financial aspects of the company to plan timely response measures.|
|Investment Risk||High - risk, high - leverage, derivatives and other short-term market volatility investments, management of investee companies.||Pay attention to changes in interest rates and exchange rates, reduce the risk of exchange rate fluctuations through appropriate financial tools, and regularly evaluate the status of funds and bank interest rates to reduce the impact of interest rates on the company.|
|Information Security Risk||Confidentiality, integrity and availability of the information will not be ensured||Strengthen personnel's awareness of information security events, establish multi-level defense such as network firewall, and establish control mechanisms such as anti-virus and mail filtering to reduce network threats. Data are set up backup and remote backup to ensure service continuity and data loss.|
|Job Risk||Occupational safety and health, safety protection and emergency response, as well as other human management operations or errors.||Continue ISO45001 certification and cooperate with the system to promote safety and health culture. carry out in SOP implementation|