Risk Management»Corporate Governance Aspect»Asset Risk Management

Asset Risk Management

• A summary of the operations and results for 2023 is as follows:
• Aside from following past practices of insuring tangible assets (e.g., buildings, equipment, inventories, logistics cargo) and intangible assets (e.g., information security, accounts receivable) against risks in accordance with or exceed industry standards, the Company has also facilitated sound self-risk management practices and conducted risk audits and training. During the year, asset risk management tasks that the team has completed are outlined as follows：
• A. Tangible Asset Management:
• Assets with economic value are inventoried on a regular or irregular basis to confirm the correctness of the number of entities and their values, and corresponding insurance is in place to achieve risk transfer.
• Risk audit and self-inspection on the Company’s operations in Taiwan: asset risk audits on the Company’s R&D complex and production plant in Taiwan were completed in 4Q FY2022. Based on the audit results, external experts confirmed that relevant risk management of the Company’s operations in Taiwan was not impacted by the pandemic. Thus, external experts still rated the Company’s operations in Taiwan above industry standards. Moreover, the company's internal specialized unit also conducts regular self-inspections on all tangible assets to ensure normal and safe operations.
• Risk audit and self-inspection operations in Mainland China, Mexico, and Thailand: Considering the distance, in addition to the self-inspection operations carried out by the personnel of the Company's plants, the Company also has entrusted local risk management experts to conduct supervision and inspection for fire safety and major power equipment on both sites to avoid relevant issues to increase operational risks.
• B. Intangible Asset Management:
• In response to stakeholders’ expectations and to strengthen the Company’s information security standards, the Company has entrusted international information security assessment experts to perform a “Red Team Assessment” in FY22. The results indicated that has confirmed that the Company’s act on border information security protection and investment in relevant software and deployment of hardware equipment is above industry standards. The Company will continue to conduct Red Team exercises to review the intrusion prevention capabilities from the outside in and to optimize the system to strengthen the protection measures. Meanwhile, to ensure a sound internal information environment and information security framework, this year to strengthen the information security health check project, we have appointed the information security company that was awarded “A Level” in the Executive Yuan’s Cyber Security Service Provider Review. to perform information security testing. The scope of the testing includes critical information and communications equipment in the headquarters office environment, production and manufacturing environments, the R&D and design environments, as well as overseas operating sites, and the items examined cover the four major aspects: the network surface, the endpoint surface, the design surface, and the data surface. The results also provide the Company with guidelines for further improvement and ensure that overall information security continues to develop positively.