Risk Management
Risk Management Framework and Policy
HIWIN has established Risk Management Committee responsible for risk control implementation. It adopts the Three Lines of defense mechanism of internal control to ensure the smooth operation of overall risk management.
Risk Management Procedure
HIWIN established its risk management procedures based on the ISO 31000 framework, which the Board of Directors approved in 2020. We control risks relevant to business operations by following the tiered organization and internal control systems. We commit to evaluating critical global economic, social, environmental, and innovative technology risks by senior managers’ participation. We implement six cyclical processes: identification, analysis, evaluation, response, management, and continuous monitoring of risks that could threaten the Company’s future sustainable operation.
Emerging Risk
In order to address the emerging risks that result from ongoing changes in the global economy, society, and natural environment, HIWIN has implemented a mechanism for identifying these risks. This mechanism includes identifying emerging risks, assessing their impact, and developing measures to mitigate and manage these risks. The purpose of this mechanism is to effectively identify emerging risks and propose countermeasures to ensure sustainable operations.
Strengthening the Risk Culture
All members of HIWIN’s Board of Directors possess expertise in risk management. The Nominating Committee periodically assesses and designs relevant courses to ensure that all directors continue their professional development. Before making critical decisions, the management team considers various current and future risk factors and only executes after making an assessment. The performance of these decisions is reflected in the Company’s profitability. Therefore, the management team’s remuneration is linked the effectiveness of risk control. Combining the management team’s KPI goals with risk control ensures management and prevention of the risks within the scope of each executive’s responsibilities. The Company then provides reasonable remuneration based on performance evaluation results.
We continuously include risk management standards in the HR review process for employees evaluation and organize multiple courses, competitions, and activities to promote risk culture.