Operational Resilience

In response to the potential human-made or natural disasters, management crises, and cybersecurity incidents, SinoPac Holdings and subsidiaries established the "Management Crisis Emergency Response Measures" and "Emergency Response Rules" and organize regular exercises to reduce the impact of incidents, restore normal operations as quickly as possible, and protect the rights and interests of customers and shareholders.

Risk incident category and impact analysis

Category	Incident	Impact or influence on business/operations	Response plan
human-made or natural disasters	Political events, strikes, wars, fires, floods, storms, earthquakes, pandemics, etc.	Climate change leads to extreme weather conditions that increase the likelihood of natural disasters. Possible impacts include damage to company premises and equipment as well as loss of customers and investment targets. Heightened geopolitical risks may lead to drastic political, social, or economic changes, which affect financial markets and reduces corporate profits.	SinoPac Holdings has defined four levels of alert based on the impact of disasters and require all units to evaluate the possible occurrence of internal events and formulate countermeasures to eliminate the impact of disaster and resume normal operations.
Management crises	Fraud derived from poor internal control, liquidity crisis, material property loss, bank run or imminent bank run	The occurrence of sudden cash demand, abnormal deposit withdrawals, large capital loss, and severe liquidity shortage due to a systemic risk crisis may jeopardize normal operations and damage the interests of depositors and investors.	SinoPac Holdings has set up a crisis management team with the President as the convener to plan and supervise the implementation of the emergency response plan. In the event of a systemic risk crisis that results in sudden cash demand or imminent sudden cash demand, the crisis management team will assess the liquidity of the market and plan emergency response measures to ensure the Company's operations.
Cybersecurity	Data leakage or tampering, system service interruption, unauthorized network access, computer virus infection, etc.	Network attacks resulting in personal information leakage, customer data alteration, system crash, network outage, etc. may result in loss of business reputation and disruption of operations.	SinoPac Holdings has conducted structural isolation and system protection enhancement for high-risk systems, and regularly organize co-location and off-site backup exercises for information security risks to ensure operational sustainability. Please see 2.4 Information Security/Cybersecurity for related information.