Risk Management

Risk Management Framework and Procedure

Ennoconn has established the “Risk Management Framework and Procedure”, which was approved by the Board of Directors in 2020, as the company’s highest guiding principle for risk management. The company evaluates risks on a regular basis each year and formulates and implements a risk management policy for each risk, covering mechanisms such as management objectives, organizational structure, attribution of authority and responsibility, and risk management procedures, in order to effectively identify, measure, and control each of the company’s risks and keep the risks arising from business activities within an acceptable range.

Scope of Risk Management

Ennoconn is committed to integrate and manage all potential strategic, operational, financial, and hazard risks that may affect operations and profits in a proactive and cost effective manner. Enterprise Risk Management is used to assess the frequency of risk events and the severity of impact on the company’s operations, define risk priorities and risk levels, and adopt corresponding risk management strategies according to risk levels. The company’s risk management includes the management of “strategic risk”, “operational risk”, “financial risk” and “other risks”.

Risk Management Organization

The company’s audit committee supervises risk management operations, the general manager’s office is responsible for coordinating various risk management-related affairs, and the audit office audits risk management operations to monitor the effective operation and execution of the company’s risk management.
At least once a year, the general manager’s office submits the company’s risk management operations to the audit committee and reports to the board of directors.

Risk Management Implementation

Ennoconn regularly evaluates risks every year and prepares risk management policies, such as objectives, organizational structure, attribution of authority and responsibility, and risk management procedures, and implements them in order to effectively identify, measure, and to control business risks within an acceptable range.

Ennoconn’s 2024 risk management was reported to the Board of Directors on November 13, 2024.