Risk Management
Risk Identification
With social development and technical advancements, we are faced with environmental and climate change, market opening and frequent cyberattacks, presenting increased changes and fluctuations in the operating environment and increasedoperating risks. Therefore, it is crucial for enterprises to understand the necessity and urgency of risk management.
When conducting operational impact analysis and risk identification, ChipMOS's identification factors include: frequency, materiality (for instance, level of impact on finance, operations, and reputation), and level of control. By quantitatively assessing the priority and level of risk in defined risk management, we can cover different types of environmental, financial and governance risks, and to adopt corresponding risk management strategies based on their respective levels of risk.
Scope of Risk Management
The scope of the ChipMOS's risk management covers various risks faced in the process of operating activities, including operational risks, climate change risks, information security risks, financial risks, supply chain risks, and legal compliance risks.
Risk Management Organization Functions
The Board of Directors, is the highest decision-making body, formulates risk management policy and organizational structure with Audit Committee supervising the operation of risk management to ensure the effectiveness of the risk management mechanism. The Risk Management Team is the competent authority for implementing risk management. The first-level supervisor serves as the convener to drive the Risk Management unit including operation manufacturing, information technology, human resource, finance and accounting, purchase and logistics, legal and other units, covering finance, strategies, operation and disaster aspects. Department head, is assigned by each Risk Management unit, evaluates quantitatively the frequency, impact and control degree of potential risks through identification, analysis, evaluation and other procedures. Then implement necessary procedures and risk management works in compliance with rules, and ensure that the involved risks are controlled within the affordable scope and keep monitoring.
The Implementation of Risk Management
On August 13, 2024 the Audit Committee reviewed the ever-changing risk environment facing ChipMOS, the focus of the Company's enterprise risk management, risk assessment and risk mitigation actions to be taken, and briefed to the Board of Directors.
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