Risk Management Organization Structure

The companys risk management organizational structure includes the Board of Directors, Risk Management Team, Auditing Office and Accountability Unit.


Risk Management Policy

For the purpose of enforcing the companys risk management mechanisms and strengthening corporate governance while reasonably assuring the Companys strategies, plans, and targets are achieved, the Board of Directors passed the risk management policy on January 5, 2021. The policy provides the top principles for risk management. The policy covers the purpose of management, the scope of risks, organizational structure and responsibilities, management procedures, risk categories, and risk management operations and implementation evaluation. Risks arising from the business activities are kept within the range of tolerance in order to achieve sustainability and stability.


Risk Management Procedures

A risk management environment should be established for all operations to effectively identify, assess, monitor, and control various risks. The potential risks should be controlled within an acceptable level to achieve the goal of rationalizing risks and rewards.
I. Risk identification:
Risk identification should cover the company’s various businesses and operating activities. By confirming the company’s operating, strategic, and profit goals, the company shall review past risk incident records, collect various industry and economic research reports, survey and identify risks that may have an impact on operations and profits, and confirm risk attributes and types.
II. Risk assessment:
Risk assessment should determine quantitative or other feasible qualitative standards based on the different risk types. It should consider the nature, scale, and complexity of the various businesses and operating activities, and regularly review them.
Risk assessment refers to the reasonable analysis and evaluation of the characteristics of risks that may cause potential loss or affect potential loss. For quantifiable risk characteristics, appropriate quantifying methods should be used for analysis and management, in order to assess the degree of risk. For unquantifiable risk characteristics, appropriate qualitative methods should be used to express the possibility and impact of risk occurrence.
III. Risk monitoring and report:
Each department should monitor the risks associated to their operations. When the degree of exposure exceeds the risk limit, the relevant department shall propose response measures and report the risk and response measure to the suitable management level. The risk shall be reported to the Sustainable Development Committee according to the severity of the risk.
The Sustainable Development Committee should report its operations to the Board of Directors at least once a year. If major risks that endanger finances, business operations, or legal compliance are found, appropriate measures should be adopted immediately, and the risks should be reported to the Board of Directors.
IV. Risk response:
After assessing and compiling the risks, each unit should properly record the risk management procedures and adopt response measures for the risks they face.


Risk Management Category


Risk Management Operation Situation

WT set up a risk management committee in 2020 to actively implement the risk management mechanism. The risk management committee meets at least once a year, and may convene at any time as needed, and reports to the Board of Directors on the operation of risk management once a year. In order to strengthen the assessment and analysis of risks related to sustainable development and enable each functional committee to effectively perform its functions, the "Sustainable Development Committee" was established under the Board of Directors on November 15, 2023. The governance mechanism of the Risk Management Committee will be merged into the Sustainable Development Committee to continuously improve the Company's risk management system. The "Risk Management Committee" was abolished on the same day.
The operation of risk management is as below:
  • The Risk Management Committee formulated the risk management policy on January 5th 2021 and submitted it to the Board of Directors for approval. It also assessed the risk of exchange rate fluctuations and the trade war between China and the United States submitted it to the Board of Directors for discussion.
  • The Risk Management Committee on January 5th 2021 and it report to the Board of Directors on the operation of the 2020 Risk Management Committee.
  • The Risk Management Committee on March 18th 2021 submit an evaluation on information security risk assessment and management response to the board of directors for discussion.
  • The Risk Management Committee on November 5th 2021 submit an evaluation on information security improvement and the information security plan of 2022 to the board of directors for discussion.
  • The Risk Management Committee on January 6th 2022 and it report to the Board of Directors on the operation of the 2021 Risk Management Committee.
  • The Risk Management Committee on August 5th 2022 submit an evaluation on management and risks of group's cash flow requirements to the board of directors for discussion.
  • The Risk Management Committee on January 6th 2023 and it report to the Board of Directors on the operation of the 2022 Risk Management Committee.
  • The Risk Management Committee on November 14th 2023 submit an evaluation on management and risks of group's cash flow requirements to the board of directors for discussion.
  • The Risk Management Team formulated the group financial management policy on August 6th 2024 and submitted it to the Board of Directors for approval.