Risk Management Organization Structure
The company‘s risk management organizational structure includes the Board of Directors, Risk Management Committee, Auditing Office and Accountability Unit.
|Risk management organization||Responsibilities|
|Board of Directors||The Board of Directors is the supervisor of risk management and the highest governance body. With the goal of complying with laws and regulations, promoting and implementing risk management, it elevates risk management policies, and continuously supervises the effective operation of the risk management mechanism, and is responsible for the ultimate responsibility of the risk management system.|
|Risk Management Committee||Risk Management Committee reports to the Board of Directors directly, and is responsible for reviewing the appropriateness of risk management policies and risk management structures, reviewing major risk management strategies, including risk appetite or tolerance, reviewing management reports on major risk issues, supervising improvement mechanisms, and regularly reporting to the Board of Directors implementation of risk management.|
|Auditing Office||The Auditing Office is directly affiliated with the Board of Directors. Its responsibilities are independent supervision and quality assurance, internal control system revision and promotion, and auditing business planning and execution. It submits an annual audit plan based on the results of the risk assessment every year, and reports the execution results to the audit committee and the Board of Directors.|
|Accountability Unit||Each Accountability Unit is responsible for the actual implementation of risk management, and the head of the accountability unit is responsible for analyzing, monitoring and reporting the risks faced by the business under its jurisdiction, and ensuring that the risk management mechanism and procedures can be effectively implemented.|
Risk Management Policy
For the purpose of enforcing the company‘s risk management mechanisms and strengthening corporate governance while reasonably assuring the Company‘s strategies, plans, and targets are achieved, the Board of Directors passed the risk management policy on January 5, 2021. The policy provides the top principles for risk management. The policy covers the purpose of management, the scope of risks, organizational structure and responsibilities, management procedures, risk categories, and risk management operations and implementation evaluation. Risks arising from the business activities are kept within the range of tolerance in order to achieve sustainability and stability.
|Risk category||Risk management process|
|Operational risks||Market structure and demand, industry development and competition, sales or procurement concentration, product and raw material prices, product development and services, business model changes, organizational structure adjustment, talent recruitment, public relations, patent application and maintenance, intellectual property protection, etc.|
|Financial risks||Inflation, financing, liquidity management, dividend distribution, exchange rate, interest rate hedging, financial investment, strategic investment, leases and material capital expenditures, etc.|
|Legal compliance risk||The risks that may arise from failure to comply with various laws and regulations or the legal risks that may infringe on the company's rights and interests.|
|Information security risks||Information assets may suffer unbearable risks, and the confidentiality, integrity and availability of the information cannot be guaranteed, including unauthorized persons who can still access the information, and cannot ensure that the information content and information processing methods are correct, complete. When authorized users need it, they cannot access information and use related assets in a timely manner, resulting in possible losses.|
|Environmental risks||The impact of environmental issues such as climate change and natural disasters on business operations and financial impacts, and identification of greenhouse gas emission management, carbon credit management, energy management, and compliance with international and local environmental protection laws and regulations caused by climate change.|
|Other risks||In addition to the above risks, if there are other risks that may cause the company to incur significant losses appropriate risk control procedures should be established based on the characteristics of the risks and the degree of impact.|
Risk Management Operation Situation
WT set up a risk management committee in 2020 to actively implement the risk management mechanism. The risk management committee meets at least once a year, and may convene at any time as needed, and reports to the Board of Directors on the operation of risk management once a year. The operation is as below:
- The Board of Directors passed a resolution to create the risk management committee and formulate organizational procedures for the risk management committee on November 6th 2020. And appointed a total of 5 members of the first risk management committee. It is included independent directors Kung-Wha,Ding, independent directors Terry Cheng, independent directors Elaine Kung, chairman Eric Cheng, chief finance officer Cheryl Yang.
- The Risk Management Committee formulated the risk management policy on January 5th 2021 and submitted it to the Board of Directors for approval. It also assessed the risk of exchange rate fluctuations and the trade war between China and the United States submitted it to the Board of Directors for discussion.
- The Risk Management Committee on January 5th 2021 and it report to the Board of Directors on the operation of the 2020 Risk Management Committee.
- The Risk Management Committee on March 18th 2021 submit an evaluation on information security risk assessment and management response to the board of directors for discussion.
- The Risk Management Committee on November 5th 2021 submit an evaluation on information security improvement and the information security plan of 2022 to the board of directors for discussion.