Risk Management

BenQ Materials established the Risk Management Committee (RMC) in 2010, focusing on the risk management system and risk transfer planning in corporate governance. The committee formulated the vision and policies for risk management, analyzed strategic risks, financial risks, operational risks, and hazard risks from both internal and external perspectives. They conducted risk identification assessments, improvement plans, and regular management reviews to effectively manage risks that exceed the risk tolerance level, aiming to build BenQ Materials into a resilient enterprise capable of withstanding risks.

 

In 2020, the Board of Directors approved the "Risk Management Policy and Procedures" in line with the "Corporate Governance Best Practice Principles for Listed and OTC Companies" issued by the Taiwan Stock Exchange on August 8, 2022. The revised policy and procedures were completed and approved by the Board of Directors for the first time in 2023.

 

Organizational Structure and Operation of the Risk Management Committee

  
 

Risk Management Operation

All negative events that affect the achievement of company operational goals are classified into four major risk categories: strategic, operational, financial, and hazard risks (including considerations of emerging risks, categorized and summarized based on the nature of the issues). These risks are managed using a risk radar chart generated through risk identification, risk analysis, and risk assessment. Each operational unit formulates risk response strategies based on the annual company-level risk improvement goals, internal risk identification and assessment results, and other events that could potentially impact operations.

Management review meetings are held regularly every six months to report, discuss, supervise, and review the effectiveness of risk management. The overall operation is supervised by the Audit Committee and the Board of Directors, with annual reports presented to the Audit Committee and the Board of Directors. In 2023, two risk management review meetings were held, covering a total of 31 risk improvement plans, nearly half of which are medium to long-term improvement plans that will continue into 2024.

In response to climate change risks, following the Task Force on Climate-related Financial Disclosures (TCFD) framework, risk and opportunity identification and assessment have been conducted, along with planning responses to significant risks. A total of 25 adaptation action plans have been implemented in the short, medium, and long term.