The AAEON Risk Management Committee was approved by the board of directors in Aug. 2020. In order to reduce the potential risks of company operations, integrate risk management and handling into daily operations and decision-making operations, formulate risk management policies for various risks, covering management objectives, organizational structure, ownership of rights and responsibilities, and risk management procedures and other mechanisms and implement them.
Effectively identify, measure, and control the company's various risks, control the risks arising from business activities within an acceptable range to reduce the possibility and consequences of damage, consider the opportunities brought by risk crises, and ensure operational goals and performance Achievement and sustainable business operation.
The scope of risk management includes "strategic risk", "operational risk", "financial risk", "information security", "intellectual property patents", "climate change", "environmental protection, climate-related laws and regulations and other international regulatory and agreement risks", "Public health" and the risk management of all activities related to the company's products, production, and service processes are covered.
In order to implement corporate governance and improve the risk management system, a risk management committee is established under the board of directors.
The committee shall have 5 members, among which at least half of the independent directors with legal or accounting or technology industry background shall participate, and shall be composed of senior executives appointed by the company. The term of office shall be the same as the term of the appointed board of directors.
The functions of the committee are as follows:
1. Comprehensively analyze the company's overall risk management, and propose revisions to risk management policies, structures, and organizational functions based on qualitative and quantitative reference materials.
2. Regularly submit reports to the board of directors, and timely reflect the implementation of risk management to the board of directors, and put forward necessary suggestions for improvement.
3. Carry out the board of directors' risk management decisions, and regularly review the company's overall risk management mechanism development, establishment and execution efficiency.
4. Set risk appetite, tolerance and targets, and review and manage the company's overall risk.
5. Assist and supervise the company's risk management activities.
6. Adjust the risk category, risk limit allocation and assumption method according to changes in the environment.
