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Risk Management

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Risk Management Policies and Procedures

The ability to discover internal and external operational risks in advance, and to properly assess and process these risks, is important to effectively prevent and reduce loss exposures as well as maintain control over operational risks. In December 2019, a risk management committee was established by the ASEH board of directors, followed by the approval of the ‘Risk Management Policies and Procedures’ in 2020 as the ultimate guiding risk management principle. Awareness in risk management forms an integral part of ASEH management, and risk management has been duly incorporated into the company’s business strategies and organizational culture. ASEH conducts risk assessments on an annual basis. For major risks, the company formulates specific management plans covering goals, organizational structure and responsibilities, and risk management procedures. The implementation of the risk management plans help to effectively identify, measure, monitor and control various risk exposures. Risks that arise from the company’s business activities can then be controlled within an acceptable range.

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Scope of Risk Management

ASEH conducts a comprehensive evaluation on the probability and impact of various risks faced during the ordinary course of business, and takes appropriate measures to continuously make improvements and reduce corporate risks.

ASEH’s business operation risks can be categorized into operational risks, strategic risks, market risks, compliance risks, information security risks, environmental risks, climate risks, financial risks, and other risks associated with business operation. To ensure that all risks are kept within an acceptable range, ASEH shall aggregate and establish benchmarks for each risk category to be regularly monitored by respective business units.

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Implementation

ASEH adopts a rigorous risk management mechanism and reports the progress to the Board of Directors on a yearly basis. Our activities in 2021 include the following:

  • The first Risk Management Committee convened the third committee meeting in 2021. The committee secretariat and representatives of the company’s subsidiaries presented 2020 risk reports and 2021 work plans.
  • On September 30, 2021, the Board of Directors appointed Mr. Sheng-Fu You (Independent Director), Ms. Mei-Yueh Ho (Independent Director) and Mr. Dtuang Wang (Group Chief Administration Officer and Chief Corporate Governance Officer), as the representatives for the second Risk Management Committee.
  • The second Risk Management Committee convened its first meeting to present the 2021 report on major risks including the management of COVID-19, water shortage and power restrictions. The committee also discussed emerging risks for 2022 including human capital, cybersecurity and energy resources.