Avertronics setup the "Risk Management Policy" in 2023, which was approved by the board of directors on May 10, 2023, as the highest guiding principle for the company's risk management.
Type of Risk
Detals of Risk
Hazard Risk
Safety protection and emergency response refer to indicate the probability of occurrence of major hazardous events and the risk of loss.
Operations Risk
Means to sales concentration, procurement concentration, intellectual property protection, legal compliance, talent recruitment and retention, and the creation and maintenance of corporate image.
Financial Risk
Market risk, Credit risk, Liquidity risk and Operational risk.
Strategic Risk
Including the risk of excessive concentration in a single region, customer concentration/the impact of large customers, agency product line concentration/large product line impact, industry concentration, and M&As
Compliance Risk/Contract Risk
Means to possible losses caused by failure to comply with relevant regulations of the competent authority. Contract risk means to possible losses caused by the signed contract itself not having legal effect, transgressions, omissions in terms, inadequate regulations, etc. that may render the contract invalid.
Information Technology Security Risk
Information assets may be subject to unacceptable risks, and the confidentiality, integrity and availability of the information cannot be ensured, including the fact that unauthorized persons can still access the information and cannot ensure that the information content and information processing methods are correct and complete. Authorized users are unable to immediately access information and use related assets when needed, resulting in possible losses.
Other Risk
Beyond the above-mentioned risks, if there are other risks, appropriate risk control procedures should be established based on the characteristics of the risk and the range of impact.
**Note: The mobile version can be read by sliding left and right.
◆Risk Management Group and Structure
The risk response organization is based on the risk management measures established by the board of directors of the company and its subsidiaries. It is convened by the general management office to coordinate and direct the promotion and operation of the risk management plan. Upon this, managers and employees of various departments jointly participate in the promotion and implementation.
The risk management team is responsible for implementing the risk management process, and the responsible supervisor is responsible for setup response measurements and actual execution of risk projects.
1. Board of Directors :
2. Audit office :
3. General Manager Office :
4. Finance Department :
5. Sales and Management Department :
◆ Outcomes of 2023
In 2023, evaluate possible response plans for the top three risk issues, setup management strategies and implement risk control, and submit a report to the board of directors on December 19, 2023. The business performed by the company's risk management team includes risk assessment, scope of risk environment and the risk control measures and risk management operations adopted.
Type of Risks
Top 3 Risk Topics
Keys of Control and Management
Strategies
Economics
Technology and Industry trend change rapidly
Traditional business profit models are impacted by e-commerce platforms
Utilize new technologies and customer channels to catch up with new retail trends and expand market applications.
Focus on the research and development of high value-added products, and delve into the development of intelligent service solution platforms such as artificial intelligence, big data, cloud technology, and intelligent interaction to expand and drive new growth momentum.
Need to develop and launch new innovative products in response to changes in the technology industry
Utilize new technologies and customer channels to catch up with new retail trends and expand market applications.
Focus on the research and development of high value-added products, and delve into the development of intelligent service solution platforms such as artificial intelligence, big data, cloud technology, and intelligent interaction to expand and drive new growth momentum.
Operations
Supply Chain disruption
External factors such as natural disasters or epidemics cause delays in supply chain production and transportation
Industrial technology changes rapidly, requiring timely access to key components of new technologies.
ESG wave drives up costs for small suppliers
Prioritize the management and control of critical raw materials with higher supply risks, and then set strategic material preparation days and demand based on market demand and supplier supply speed. Develop innovative technologies, improve parts manufacturing capabilities, and cooperate with third parties to implement a procurement strategy of more than two sources of supply.
Maintain closely relationships with key parts suppliers to understand their production capacity and load status, and flexibly adjust procurement lead times accordingly. Actively engage in technical cooperation or strategic alliances with major domestic and foreign manufacturers to facilitate the launch of new products or the acquisition of new technologies.
Ensure supplier supply capabilities through regular audits, continue to search for and cultivate local suppliers that can provide high-quality products that comply with environmental regulations, implement local procurement priority strategies, and shorten transportation miles to reduce carbon emissions.
Difficulty attracting and retaining employees
Establish multiple communication channels and communicate with employees based on the content of the issues
Provide wages and benefits that meet or better than local laws and regulations
Strengthen employees' professional capabilities and international perspectives through diversified channels
Inplement safe working environment and prevent occupational disasters
Establish diversified and smooth two-way communication channels and conduct employee opinion surveys, and conduct necessary communications after collecting various employee opinions.
Depending on the location of the operating sites, the salary of all employees shall comply with the basic salary level stipulated by local laws and regulations, and social insurance shall be provided in accordance with the regulations, and insurance and welfare measures beyond the provisions of laws and regulations will be provided.
Corporate sustainability as the company's core value, actively invest in reengineering employee functions, and activate and strengthen human resources organizations to promote employee career development.
Set "building a safe and healthy workplace" and "zero occupational accidents" as the safe working environment management goals, we expect employees and workers to work in a healthy and safe environment.
**Note: The mobile version can be read by sliding left and right.
◆ Risk Evaluation
Top Topics
Risk Evaluation Item
Policies of Risk Management
Enviroment
Climate Change
Support and implementTCFD, and evaluate the financial risks of climate change through climate change risk questionnaires, and then set and plan annual goals, budgets and plans by EHS and facilities units, submit them to the Environmental Protection Committee for review, and follow ISO 14064- 1. Greenhouse gas verification standard implementation corresponding plan, and subsequent planning for ISO 50001 energy management system preparation.
Green process and Products management
Future new products developed by Green designed be the priority.
Social
Friendly workplace
Establish diverse and smooth two-way communication channels (quarterly labor-management meetings, annual group-wide strategic consensus meetings, monthly AVI group meetings) and complaint channels for labor/human rights issues, and strive to create a friendly workplace.
Corporate Governance
Social economy and legal compliance
Setup the governance organization and implementing internal control mechanisms, we ensure that all personnel and operations comply with relevant laws and regulations.
Information security
Develop information security policies based on the company's actual internal management needs. In response to actual needs and development trends, implement corresponding information security strategies and visions with the purpose of improving the information security protection system. Through risk-oriented security protection mechanisms, supplemented by continuous training, Improve employees' information security awareness to establish a safe and trustworthy information security environment. We will prepare for the subsequent plans of the ISO 27001 information security management system and evaluate the information security policy by yearly basis and report to the board of directors.
Intellectual property management
Property Rights Management Measures" are implemented to regulate and manage the acquisition, maintenance, and use of various intellectual property rights such as patents, trademarks, copyrights, and trade secrets. The implementation status will be reported to the board of directors once a year to ensure that operations and results are in line with the company's plan.
Human Rights
Occupational Health and Safety
Establish occupational safety and health policies to ensure the safety and hygiene of various operations and working environments, and commit to all employees and the relevant public to implement safety and health policies to achieve the responsibilities and obligations of protecting employee safety and health.
Regarding occupational health, we actively participate to implement the workplace safety and health through on-site services provided by nurses 4 times a month and doctors 4 times a year, assisting occupational doctors and nurses to improve the effectiveness of employee health management, and analyze the health problems of colleagues through the results of regular health examinations held by the company as well as planning appropriate health promotion activities will not only help prevent the occurrence of occupational disasters and occupational diseases, but also improve the physical and mental health and work ability of workers.
Labour Relations
If the company implements major operational changes that may seriously affect employees' rights, it will inform employees after communicating at labor-management meetings.
**Note: The mobile version can be read by sliding left and right.
◆Traning
Date
Contents
Numbers of attendees
Man-Hours
2023/12/12
The Practice of Trade Secrets Law Training
51
26
2023/11/17
Training of " What law teaches you about management"
1
3
2023/10/24
Effectively grasp the energy of intellectual property - talk about intellectual property management and investment waivers
2
6
2023/10/3
Propaganda on regulations for facilities in special places
1
8
2023/9/11
Internet security awareness Training
56
56
2023/9/7
Information security protection and cloud security audit practice seminar
1
6
2023/8
Occupational safety and health education and training
120
360
2023/5~7
Operation Business Secrets training
171
153
2023/5/19
H1 of 2023 Fire and Evacuation training
26
104
2023/3/13
Sharing for ChatGPT study and Information Securities
59
59
2023/2/13
Summary of Trademark and Patents
64
64
**Note: The mobile version can be read by sliding left and right.