Sustainability
CH
Sustainability

Together, a better life.

Together, a better life.

Risk Management

Risk Management

Operational Resilience

In response to the COVID-19 pandemic that started in early 2020, SinoPac Holdings formulated the "Business Continuity Plan" in 2020 to use groups that take turns working in the offic remote backup, and work from home backup mechanisms to ensure the supply of stable and high-quality services to customers. In 2021, SinoPac Holdings established the "Response Mechanisms for Simulated Epidemic Conditions" and "Epidemic Reporting and Management Procedures" to work with all employees in epidemic prevention and protect the health and safety of employees and customers. In 2022, SinoPac Holdings gradually relaxed epidemic prevention measures to support the government's strategy for "balances normal life, active disease prevention and steady reopening” while accounting for both epidemic prevention safety management and business development. It restored normal business activities and accelerated digital transformation.

Evaluation of the Impact of COVID19-on SinoPac Holdings and Risk Management

Impact on business operations
Financial Impact
Impact on the supply chain

In response to the continuous outbreaks in 2022, SinoPac Holdings activated working from home and remote backup measures when necessary and set up "SinoPac Holdings Workplace Contingency Plans" to reduce the impact of the pandemic. Bank SinoPac launched the “iBranch platform” to provide digital branch services and create a unique over-the-counter experience during the pandemic. In addition, the operations and services of all branches were not affected or interrupted.

Credit risks
In response to the impact of the pandemic and the overall economic environment on the quality of loan products of the Group in 2022, the subsidiaries continued to monitor customers who are listed for early warning, relief, anomaly, and collection of overdue payments as well as the non-performing loans and deposit assets. The Risk Management Division regularly prepares asset quality information to report to the executive meeting of SinoPac Holdings.

With regard to the structural and policy risks of China and the impact on conditions in Taiwan Strait, SinoPac Holdings and subsidiaries have prepared response strategies and enhanced measures to address the four risks in China. The results were reported to the executive meeting of SinoPac Holdings.
Market risks
The uncertainty and changes in the global economy brought about by the COVID-19 pandemic resulted in severe market fluctuations that affected the stability of financial markets. Hence, market changes were closely monitored when making investments and hedging was used when appropriate. Dispersed overseas investments in terms of currency, country, and industry, balanced the positions of fixed interest rate and floating interest rate bonds, and dynamically managed the duration based on the market condition.
Liquidity risks
The Risk Management Division of SinoPac Holdings monitored the daily cash flow of Bank SinoPac and gaps at maturity dates in order to maintain sufficient working capital. The working capital of each subsidiary and effectiveness of contingency measures are periodically reviewed to ensure the normal operation of subsidiaries.

Local procurements accounted for 97% of SinoPac Holdings' overall procurements. All procurement items have alternative suppliers to ensure uninterrupted supply. The Company did not experience any supply chain shortages, and supplies for daily operations were not affected.