Risk Management Policy

TOP

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, the procedures in various risk management including limits on market risks, credit risks, operation risks and liquidity risks, the authorization and operating guidelines for each business unit, and the identification, measurement, assessment and management of credit, market, operation, asset and liability, reputation, legal, compliance, strategy and other business related risks such as emerging risks and climate risks. SinoPac Holdings references related reports on emerging risks and climate risks published by external institutions and provides its subsidiaries with information for risk assessment and establishment of response measures so as 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 has a clear risk management structure, split into 4 dedicated levels, namely, the Board of Directors, the Risk Management Division, the Risk Management Division, and at the front-line level of auditing units with clear separation of duties and responsibilities. We have established complete risk guidelines and limits, enabling an appropriate balance between profitability and risk.

Clearly state risk management organizational structure, roles, and responsibilities