Risk Management
Risk Management Policy
To strengthen corporate governance and effectively implement the risk management mechanism and reduce the risks that operations may face, Winmate has formulated a "risk management policy and procedures" approved by the board of directors. The risk management policy is to define various risks by 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.
Winmate examines factors such as business characteristics, operating characteristics, internal and external environments, and summarizes the scope of risk management including operational risk, financial risk, strategic risk, hazard risk, legal risk, and other risks. To ensure that various risks are controlled within a tolerable range, a control procedure is established for risk identification, analysis, evaluation, response, monitoring, and correction, to grasp the scope of risks and take appropriate measures.
A risk management meeting is held regularly every year, chaired by the vice president of the general administration department. The heads and responsible people of each department form a risk management team to analyze the organizational situation and identify potential risk factors based on changes in the internal and external environments and to measure the degree of impact and possibility of risks. Responsibilities are 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.
| Topic for discussion | Risk ITEM | Risk management policy or strategy |
|---|---|---|
| Environment | Greenhouse gas management | Winmate followed the requirements of the International Standards Organization (ISO) for greenhouse gas inventory in 2008 and ISO 14061-1. After that, it carried out greenhouse gas inventory work every year and promoted various energy-saving measures and management plans to reduce energy consumption and its impact on the environment. At the same time, internal documentation and verification procedures were established to promote environmentally-focused participation for all employees. Winmate is a non-energy-intensive industry, whereby greenhouse gas emissions mainly come from purchased electricity that accounts for more than 90%. Therefore, the company strives to save electricity by reducing greenhouse gas emissions. |
| Hazardous substance management | Winmate is committed to the design and development of green products, and product design thinking based on "product life cycle” and considers the purchase of raw materials, manufacturing, transportation and distribution, consumer use, disposal as well as the environmental impacts at various life cycle stages such as home recycling. Winmate was introduced in 2009 to the IECQ QC 080000 Hazardous Substance Process Management System (HSPM) and passed the third-party fair unit verification to obtain the certificate. The green products manufactured by the incoming inspection unit are regularly sampled and inspected by a third-party laboratory to test the content of harmful substances to ensure that the incoming materials meet the requirements of the "RoHS Hazardous Substances Testing Practice". | |
| Response to climate change | Under the crisis of global warming, climate change has become a global issue. The company participates in various domestic environmental sustainability-related activities and understanding, including government, investors, customers, and social leaders. Many stakeholders are concerned about environmental- related issues, and we assess the problems related to climate change, regulatory risk, material risk, the impact list the opportunities, and response plan. We are currently in the process of planning a net-zero emissions strategy and will make a net-zero commitment in the future. | |
| Society | Occupational environment safety | To prevent occupational disasters and ensure the safety and health of employees, following relevant laws and regulations on occupational safety and health, a dedicated first-level management unit for security and health affairs has been established. An occupational safety and health committee has been established. The general manager, as the chairman, comprehensively managing the company’s internal, external, and employee safety, health, and other related affairs planning. There are 10 members in the committee, of which 6 are labor representatives related to labor health and safety, which is more than 50% of the committee. The committee is responsible for emergency management procedures and various operating standards, implementing independent equipment inspections, employee safety and health, fire protection and hazard general education training, in-plant chemical management, preventing occupational disasters; and actively promoting and implementing various work safety measures. They also work to increase handling equipment, reduce human- caused injuries; regularly check fire-fighting equipment and execute fire-fighting group drills, and operate fire-fighting equipment to build a safe and low-risk working environment. |
| Product safet | Since 2002, Winmate has successively passed and obtained ISO 9001 quality management, ISO 13485 medical equipment quality management, and IECEx & ATEX explosion-proof quality management system certifications, actively expanding diversified niche markets and establishing a sustainable and excellent management system to serve customers. Through the implementation of related activities Winmate aims to improve product quality, reduce operational risks, reduce energy consumption, and increase resource utilization. All products comply with the relevant laws and regulations of the government, and through rigorous quality system management, provide customers with stable product quality. At the same time, to ensure the quality of customer service and improve customer satisfaction, we conduct regular customer service satisfaction surveys every year to strengthen cooperation with customers. The relationship through mutual benefit and shared prosperity with customers, becomes the cornerstone of the sustainable development of the enterprise. | |
| Corporate governance | System and regulatory compliance | Regularly promote the company's system and related laws and regulations to employees through the education and training of recruits and on-the-job continuous education and training. Employees have a clear understanding of the expectations and standards that should be followed. Through the establishment and implementation of an effective internal control system, and based on risk assessment, the performance of internal control checks to ensure that personnel and related operations have indeed achieved compliance with the plan and associated laws and regulations. |
| Conflict of interest avoidance | The principle of avoidance of conflict of interests is stipulated in the rules of procedure of the board of directors. Directors who have a personal or corporate interest in the matters being discussed at the meeting are required to disclose the relevant details of their interests during the board meeting. They must refrain from participating in the discussion and voting if there is a potential harm to the company's interests. Furthermore, they should abstain from voting and avoid representing other directors in exercising their voting rights. Any instances of conflict of interest should be clearly recorded in the minutes of the board meeting. | |
| Implementation of the Integrity management policy | Formulate integrity management policies and procedures, set up a dedicated unit responsible for the promotion of integrity management policies, conduct inspections based on effective internal control systems and accounting systems, regularly report to the board of directors, set up whistle- blowing mailboxes and acceptance units, conduct regular integrity management education and training. The company website should declare the rules and regulations of ethics and integrity, so that employees clearly understand that integrity management is the cornerstone of company operations. When conducting business activities externally, we should communicate with transaction partners to understand the company's "integrity management" philosophy, reject any transactions with dishonest behavior, and ensure the implementation of the integrity management policy. |