Risk Management
In line with our commitment to sustainable development for employees, shareholders, long-term growth, and social responsibility, HIWIN has implemented rigorous systems to integrate and manage various operational risks, including operating strategies, finances, and potential risks to business performance. On August 5, 2020, we established a Risk Management Committee and approved the risk management policy and procedures. In addition to adhering to organizational management and internal control systems at different levels, we also consider risks throughout our operational processes. This includes assessing potential threats from significant global economic, societal, environmental, and technological risks that could impact the Company’s future sustainability. Senior executives are actively involved in implementing risk management as part of this commitment.
Risk Management Process
The Risk Management Committee, led by Chairman & CEO Eddie W.H. Chuo, is comprised of senior executives. Its main responsibilities include evaluating the likelihood and impact of risk events using a risk matrix, establishing risk levels and priorities for risk control, and implementing risk management measures. The committee conducts ongoing risk assessment and control in daily operations, fosters a culture of risk management, and provides an annual report to the Board of Directors.
Main Sources of Risk
The primary sources of risk encompass industry change risk, climate change risk, supply chain risk, intellectual property and litigation risk, information security risk, credit and financial risk, human resource risk, workplace safety and health, and other emerging risks. For further details, please consult the ” Analysis of Risk Events ” section in the 2022 Annual Report.
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.