Risk management policy
To strengthen corporate governance and effectively implement risk management mechanisms and reduce the risks encountered in operations, the Company has formulated a "risk management policy and procedures" approved by the board of directors. The risk management policy is to define various risks following the Company's overall operating policy, establish a risk management mechanism for early risk identification, accurate analysis, and evaluation, effective response and supervision, and prevent possible losses within the tolerable risk range, based on internal and external environmental changes, Continue to adjust and improve to achieve the best risk management practices, protect the interests of employees, shareholders, partners and customers, increase company value, and achieve the optimal principle of company resource allocation.
The Company reviews business characteristics, operating characteristics, internal and external environment, and other factors and summarizes risk management categories, including operational risks, financial risks, strategic risks, hazard risks, legal risks, and other risks. To ensure that various risks are controlled within a tolerable range, control procedures are established for risk identification, analysis, evaluation, response, monitoring, and correction, to grasp the scope of risks and take appropriate measures.
Regular risk management meetings are held every year, presided over by the vice president of the general management office, and the heads and responsible person of each department form a risk management team. According to the internal and external environment changes, the organization situation analysis and potential risk factors measure the impact and possibility of risks. To determine the risk level, consider the risk tolerance and propose a response plan, and the executive department will implement the correction and continue to monitor, adjust and improve, to achieve the Company's overall risk control goal.
Risk management on economic, environmental, and social topics
Based on the principle of materiality and considering the degree of impact, the Company conducts risk assessments on essential corporate social responsibility issues (environmental, social, and corporate governance). It formulates risk management policies and strategies based on the assessed risks.
|Topic for discussion||Risk ITEM||Risk management policy or strategy|
|Environment||Management||In 2008, the Company followed the requirements of the International Standards Organization (ISO) in the greenhouse gas inventory, the import of ISO 14061-1, after which the annual greenhouse gas inventory work, and promote energy-saving measures and management programs to reduce energy consumption and impact on the environment. Establish internal documentation and verification procedures to promote full participation and consensus-building. The Company is a non-energy-intensive industry, ECO gas emissions mainly from the purchase of electricity, about 90%, so to reduce greenhouse gas emissions by saving electricity, and set annual electricity consumption reduction targets and ECO emission reduction targets.|
|Hazardous substance management||The Company is committed to green product design and development; product design thinking is based on the "product life cycle" and considers the original material procurement, manufacturing, transportation and distribution, consumer use to disposal recycling, and other life cycle stages of environmental impact. In 2009, IECQ QC 080000 Hazardous Substances Process Management System (HSPM) was imported and verified by a third-party impartial unit through certification. Green products manufactured by the feed inspection unit monthly regular sampling commissioned third-party laboratory, testing the content of harmful substances to ensure that the feed-in line with the "RoHS hazardous substances testing operating specifications" requirements.|
|Climate change response||In the face of the global warming crisis, climate change is a global issue, and by participating in various environmental sustainability-related activities in the country and understanding the environmental-related issues of concern to stakeholders, including governments, investors, clients, and the general public, the Company assesses the regulatory, material and other risks associated with climate change, as well as the impact that risks can have, and lists opportunities and response plans.|
|Society||Occupational and environmental safety||To prevent occupational disasters and ensure the safety and health of employees, the Company, following the relevant laws and regulations on occupational safety and health, has a dedicated level management unit for safety and health affairs, and set up an occupational safety and health committee, with the general manager as the chairman of the Committee, and the planning of safety and health-related matters within and outside the Company and employees. There are 10 members, of whom 6 are representatives of labor parties related to labor health and safety, representing more than 50 percent of the Committee. To formulate emergency response management procedures and operational standards, and implement independent inspection of equipment, implementation of staff safety and health, fire and hazard education and training, plant chemicals management, prevention of occupational disasters; And actively promote and implement various industrial and safety measures, increase handling equipment, reduce human injury; Regularly check fire equipment and self-defense fire formation drills, the actual operation of fire equipment, to build a safe and low-risk working environment.|
|products safe||Since 2002, the Company has passed and obtained ISO 9001 quality management, ISO 13485 medical equipment quality management, IECEx and ATEX explosion-proof quality management, and other systems certification, and actively expanded the diversified niche market of a sustainable excellent management system to serve customers. By implementing related activities to improve product quality, reduce operational risk, reduce energy consumption, increase the use of resources. The Company's products comply with the government norms of the products and services decrees, and through strict quality system management, to provide customers with stable product quality. At the same time, ensure customer service quality, improve customer satisfaction, regular annual customer service satisfaction survey, strengthen the relationship between customers, through and mutual customer benefit and shared prosperity, become the cornerstone of sustainable development of enterprises.|
|Corporate governance||System and regulatory compliance||Regularly through the education and training of new personnel and on-the-job continuing education training, to promote the Company's system and related regulations to employees, employees clearly understand the norms to be followed. And through the establishment and implementation of an effective internal control system, and based on risk assessment, the implementation of internal control checks ensures that the Company's personnel and related operations achieve the system and related regulations.|
|Conflict of interest avoidance||The Company specifies the principle of interest avoidance in the rules of deliberation of the board of directors, and the directors shall explain the critical content of their interests to the board of directors at the time of the meeting, and the persons who have an interest in the matter of the meeting and the legal person on their behalf. Where harmful to the Company's interests, they may state their opinions and answers, shall not join the discussion and voting, shall be avoided in the discussion and voting, and shall not exercise their voting rights on behaving for other directors. Avoidance of interests should be listed in the proceedings of the Board of Directors.|
|The implementation of the integrity management policy||The Company has formulated policies and procedures for good faith management, set up a dedicated unit responsible for the promotion of integrity management policy, based on effective internal control and accounting system for verification, regular reporting to the Board of Directors, the establishment of whistleblowing mailboxes and receiving units, regular integrity management education training and the Company's website to declare ethics and integrity of the system and regulations so that employees clearly understand the integrity of the operation of the Company's operating cornerstone. When conducting business activities abroad, let the transaction object understand the Company's integrity business philosophy, reject any dishonest behavior of the transaction, and ensure the integrity of the business policy.|