Risk Management

Corporate Governance

Risk Management

The company has formulated a “Risk and Crisis Management Rules” and approval by the board. The board of director is appointed as the supreme governance unit and established an inter-departmental risk management unit to joint identify all types of risks that could impact company’s operations and adopt appropriate response based on the evaluation results to effectively reduce the company’s operating risks. The company pays attention to the development of domestic and international risk management at all times to review and improve the risk management system established by the company and enhance the effectiveness of risk management. Risk management reports are submitted to the audit committee and the board of directors at least once a year. The performance of 2023 has been reported to the audit committee and the Board meeting on the 8th of November 2023.

Scope

In addition to dealing with risks arising from various business operations such as marketing, operations, human resource allocation and response, and financial accounting risk assessment according to the company’s existing regulations, the company is also actively developing more sensitive procedures to supervise, evaluate, and control risks, taking into account safety and efficiency, establish a more economical business operation model, and strengthen early warning and monitoring capabilities.

Organization

It is composed of the senior executives of various departments. It uses irregular meetings to identify, evaluate, confirm and classify various risk issues faced by the company, and agree on feasible plans. At the same time, it should reflect the implementation of risk management to the board of directors in a timely manner, and put forward necessary suggestions for improvement. The functions and responsibilities of the relevant departments are as follows

Board of Directors
  • Responsible for supervising and confirming the appropriateness and effectiveness of the company's risk management process.
  • Approve and release risk management policy and regulations.
  • Supervise the implementation of overall risk management system, ensuring the risk manage-ment processes operate effectively.
Auditing Office
  • Concentrate on internal works of major risks defined by the risk management unit, and audit the Company’s risk management processes.
  • Ensure the internal control system is effectively implemented and track improvements made to deficiency; have relevant progress reported to the audit committee timely.
  • With regard to risk management and interior control, assist to define the risks, evaluate and educate employees.
  • Inter-departmental communication and coordination
  • Evaluate the appropriateness and effectiveness of the risk management system
Financial Division
  • Formulate risk management regulations, and implement risk management regulations and policy approved under the resolution of board of directors.
  • Media public relations and external relations to maintain the company’s good reputation and build a good corporate image

Acter

Item
General Administration Division
  • Allocate manpower and respond to activities thereof.
  • Implement and handle all types of insurance operations.
  • Track and handle the progress of litigation.
Financial Division
  • Financial analysis and planning; evaluation of financial risks.
  • The unit that allocates funds; supervise and evaluate customers’ credi-bility.
  • Track and manage receivables.
  • Implement and handle report and announcement relevant operations.
Engineering Department
  • Implement budget control
  • Track customers’ orders.
  • Evaluate unrecognized risks
  • Control the balance.
  • Control the engineering progress.
Business Department Control possible changes to the Company’s business activities in the future.
Procurement Department Control the supply channel of key channels; track and manage the orders.
Design Department Clarify questionable parts of design drawing.
IT Department
  • Develop, install and manage all types of information systems.
  • Maintain information security and control the use of software.
Quality Insurance & safety Department Establish and maintain environmental and construction safety and hy-giene.

Subsidiaries

Follow the Company’s “Risk and Crisis Management Rules” to evaluate and monitor risks, and report the risk management status to the CEO of Acter.