Risk Management Policy and Procedures
Through the establishment of an appropriate risk management structure, guidelines, controls, and risk reporting systems, as well as a sound risk management culture, SinoPac Holdings integrates and manages related risks, timely reviews the revised management mechanisms or measures, and fully formulates risk-related regulations and limits to prevent the occurrence of significant risk events and to achieve the best 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. In addition to development of a risk management environment and culture for each subsidiary, the Policy defines the integrated management regulations and limits for various risks, the authority and operating guidelines for business units and other risk management procedures to identify, measure, assess, and manage risks. 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 risk, climate change risk and nature-related risk. 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 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.
The Risk Management Division of SinoPac Holdings reports to the Board of Directors monthly and to the Risk Management Committee quarterly on the implementation of risk management and recommendations for improvement. The overall status of the Company's management of existing or potential risks or climate change risks (including physical risks and transition risk indicators) and the progress of related projects are also reported to the Audit Committee on a quarterly basis.
SinoPac Holdings Risk Management Mechanisms
SinoPac Holdings Risk Management Procedures
