Risk Management

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Risk Management

Organizational structure
  • Board of Directors
    • Set the company’s vision, risk management policy and structure.
    • Ensure the effectiveness of the design and implementation of the risk management mechanism.
  • Executives
    (CEO, COO, Business Management)
    • Exercise risk management issues determined by the board, and conduct resource allocation.
    • Coordinate the Group’ risk management interaction and communication.
    • Determine risk tolerance method and resource allocation.
  • Auditing Office
      Provide independent auditing service to ensure risk management procedures are enforced.
  • Back-end Functional Group
      Establish and exercise risk management processes that are in compliance with the operation procedures of each functional unit.
  • Business Groups, Units and Subsidiaries
    • Exercise risk management control activities.
    • Monitor and reduce overall operating risks.
    • Conduct periodic annual self-assessment.
Inherent Limitation

A risk management mechanism has inherent limitation, including human misjudgment in the decision making process, risk response, cost-effectiveness consideration in setting up control strategy, breakdown from purely human errors or mistakes, collusion, fraud, etc. Those limitations constrain business risks to be completely eliminated.

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