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.
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.
ASEH actively promotes the implementation of risk management mechanisms and reports the status to the Board of Directors on a yearly basis. In 2020, the company has completed the following:
- Issued the ‘Risk Management Policies and Procedures’.
- Conducted the first Risk Management Committee meeting to report on the status and measures of COVID-19 prevention at each major ASEH subsidiary. The meeting aims to enhance the internal control systems and raise the awareness of epidemic prevention at ASEH and its major subsidiaries.
- Conducted the second Risk Management Committee meeting to explain the risks, and ensure compliance by ASEH and all subsidiaries with regard to the latest U.S. Export Administration Regulations (EAR).