公司治理
Risk Management
I. Risk Management Policies and Procedures
The company established the “Group Risk Management Regulations” in 2009, approved by the board, as the highest guiding principle for the company’s risk management. To build a robust risk management system and foster a proper risk management culture, both the company and its subsidiaries (sub- subsidiaries) adhere to this regulation in terms of organizational structure, responsibilities, risk identification, measurement, monitoring, reporting, and information disclosure. This is done to ensure that the risks the company may face in its operations are maintained within acceptable limits and to achieve sustainable business operations. The risk management unit may convene risk management meetings on a regular basis or as needed, chaired by the head of the business department within the parent company. The important outcomes of these meetings shall be reported to the chairman.
II. Risk Management Scope
Risk management is not solely the responsibility of individual business units. All units within the company should address specific risk sources, monitoring, reporting, and information disclosure. Confirmation and classification of these risks should be carried out for further measurement and management. Each business department within the company, considering the nature of its industry or products, should effectively manage risks, including “market risk,” “credit risk,” “liquidity risk,” “operational risk,” and “legal risk.” Based on the risk categories and sources outlined in Article 3 of the “Group Risk Management Regulations,” each department should separately establish relevant risk management procedures.
III. Organizational Structure
IV. Operational Status
Since 2009, in accordance with the provisions of Article 9 in the “Group Risk Management Guidelines,” when the company and its subsidiaries (sub- subsidiaries) acquire or dispose of financial assets measured at fair value through other comprehensive income, the risk management unit prepares a risk assessment report. This report is then circulated internally through an internal coordination document for feedback from relevant units and is executed after approval by the chairman.
Following the provisions of Article 12 of the “Group Risk Management Regulations,” the company formulated the “Audit Plan for the Year 2023” based on risk levels, which was submitted to the Board of Directors for approval on November 9, 2022. Additionally, the company conducts self-inspection of the internal control system annually in accordance with the “Guidelines for Establishing Internal Control Systems by Public Companies” and legally issues an internal control system statement. The statement was submitted to the Board of Directors for approval on March 21, 2023.
In the 2022 fiscal year, employees of the company and its subsidiaries participated in internal and external education and training related to corporate social responsibility, integrity in operations, and an overview of operational risks. The relevant courses cover corporate social responsibility, compliance with integrity in operations regulations, an overview of operational risks (including strategic risks, operational risks, financial risks, compliance risks, information security risks, and climate risks), accounting systems, internal control, and more. The training participation statistics are summarized in the table below:
Company |
Number of Training Sessions |
In-house Training |
External Training |
Total Cost of Training |
||
Person-Hours |
Number of Graduates |
Person-Hours |
Number of Graduates |
|||
Gem Terminal |
127 |
1640hours |
336persons |
1664.0persons |
176persons |
NTD126,300 |
Dongguan Gem Electronic & Metal Co., Ltd. |
122 |
2934hours |
1612persons |
644persons |
34persons |
RMB11,780 |
Suzhou Gem Opto-Electronics Terminal Co., Ltd. |
129 |
6113hours |
792persons |
584persons |
43persons |
RMB14,270 |
Vietnam Gem Electronic and Metal Co., Ltd. |
68 |
497hours |
396persons |
4hours |
12persons |
VDN 22 million |