The Company formulated the "Risk Management Policies and Procedures", which was approved by the board of the 2nd meeting of the 16th session in 2021. The Company bring the spirit and content of "the Risk Management Best Practice Principles for TWSE/TPEx Listed Companies" that announced by the Taiwan Stock Exchange Corporation into the Company’s “Risk Management Policies and Procedures” as the guiding principle for our risk management practices and approved by Board at the 9th meeting of the 16th session on November 8, 2022. Our risk management policies cover the following, 1. Risk management objectives; 2. Risk governance and Culture; 3. Risk management organizational structure and responsibilities; 4. Risk management procedures; 5. Risk reporting and disclosure. The risk management team identifies risk factors and proposes control measures for potentially risky items every year. Within the scope of the risk, the impact and influence caused by the risk are minimized and reviewed at all times to reasonably ensure the achievement of the Company’s goals.

We examines the industry its belong to the Company, consider corporate Sustainability Development Goals key points, and the business and operating characteristics of subsidiaries, summarize four major risk aspects, operating performance, environment, society and corporate governance. Within industry type, business characteristics and be confronted with environmental impact, we use the following process and relevant resources for our risk assessment and monitoring to achieve effective risk management and incorporate risk awareness into our culture and governance.

In January 2022, the board resolved to approve the establishment of the Risk Management Committee, and the positions of all committee members were held by independent directors. The Risk Management Committee is a functional committee established according to the provisions of the Risk Management Policy and Organization and under the board of directors to assist the board in supervising and monitoring the implementation of the Company’s risk management practices. The risk management team consists of nine functional units, and the president serves as the general convener of the risk management team, who is responsible for implementing risk management. The team is the responsible unit for carrying out risk management tasks and reports to the Risk Management Committee at least twice a year.

Please refer to the information on the Risk Management Committee