In the face of a dynamic world, TMC has established a risk management organization to effectively implement its operational strategy focused on sustainability. This initiative is aimed at ensuring good corporate governance by formulating risk management systems, procedures, and methods. The outcomes of risk management serve as a reference for strategic decision-making, all while safeguarding the interests of stakeholders.
TMC commits to comply with relevant domestic and international regulations, standards, and recognized initiatives associated with the theme. Utilizing the risk management organization, TMC conducts risk assessments and responses to actualize the vision of sustainable operations.
Risk Management Board and Risk Management Execution Committee
The governance organization fully supports the implementation of improvement plans for projects with moderate and high levels of risk, and the Risk Management Execution Committee coordinates the collaborative efforts of various departments within the company.
- Every year, in the first quarter, Taiwan Mask Corporation conducts a risk assessment based on four dimensions: strategy, finance, operations, and hazards. Each department inventories its responsible business projects within these dimensions and assesses the risk impact using a risk matrix to determine the risk level for each business project.
- Every year, in the first quarter, each department establishes risk management response plans for projects identified as having medium to high risk through risk assessment. This ensures effective response and risk reduction, contributing to the goal of sustainable corporate operations.
- In the fourth quarter of each year, a report on the annual results of risk improvement is presented to the Board of Directors.
- Each unit continues to assess and respond to long-term internal and external changes in the corporate and organizational environment, including risks related to the environment, governance, and society. This ensures that the organization is well-prepared and capable of effectively responding to future risks, thereby reducing operational uncertainties.
- Report on the results of risk improvements for the fiscal year to the Board of Directors every fourth quarter.
Risks are challenges that companies must face. Implementing risk management allows for the grasp of the sustainability of operational management and maximizes the interests of stakeholders. Risk management includes environmental, governance, and social aspects. Action plans are developed and implemented based on identified negative impacts. This year, a total of 107 risk items across the four dimensions were assessed. High-risk items include supply chain management, information security, and the impact of the Covid-19 pandemic. The Risk Management Steering Committee has continually tracked and confirmed these risks, effectively formulating relevant strategies to control risks within acceptable limits.
- Monthly meetings of the Risk Management Executive Committee are held to assess and discuss risk items in the four dimensions: strategy, finance, operations, and hazards. During these meetings, improvement plans are executed, and progress is tracked and discussed.
- In the fourth quarter of each year, a report on the results of risk item improvements for that year, as well as follow-up actions on high-risk items, is presented to the Board of Directors.
In the face of the coexisting era with the pandemic and the ever-changing business environment in 2022, TMC established the Risk Management Execution Committee. Apart from adhering to legal requirements and internal management needs, various management measures were formulated for relevant units to follow. The committee aims to identify potential future risks and enhance the company's ability to cope with threats and ensure sustainable operation through governance structures and optimized risk management processes.
Risk Management Organization Management Mechanism
Risk Issues Management Process