Risk Management Policy

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SinoPac Holdings has adopted an appropriate set of risk management organizational structure, management standards, control mechanisms, risk management report system, and a sound risk management culture to integrate the management of crucial risks and review and amend management mechanisms or measures when necessary. The Company establishes comprehensive risk regulations and limits to prevent the occurrence of material risk incidents to attain the optimal balance between profitability and risk management.

SinoPac Holdings' Risk Management Policy was approved by the Board of Directors in 2009 and the latest amendment was approved by the Board of Directors on December 20, 2019. The Policy includes the development of a risk management environment and culture for each subsidiary as well as integrated management regulations and limits for various risks, the authorization and operating guidelines for each business unit, and the identification, measurement, assessment, and management of risks. The risk management unit or personnel of SinoPac Holdings and its subsidiaries are required to regularly report risk management status and improvement recommendations to the Board of Directors. In the event of material risk exposure, suitable actions shall be taken immediately and reported to the Board of Directors. SinoPac Holdings also conducted risk assessments and created risk response measures for credit, market, operation, asset and liability, reputation, legal, compliance, strategy risks, and other risks associated with business operations including emerging risks and climate change risks. They are used to identify the related risks at the group level and formulate response measures to be reported to suitable management levels.

The risk management Division of SinoPac Holdings reports risk management status and improvement recommendations to the Board of Directors on a monthly basis and quarterly to the Risk Management Committee. In the event of material risk exposure, suitable actions shall be taken immediately and reported to the Board of Directors.


SinoPac Holdings Risk Management Mechanisms


SinoPac Holdings Risk Management Procedures