Page 69 - E-BOOK

The enterprise risk management structure
The Company continuously specifies its enterprise risk management, while considering various risks that may
prevent the Company from achieving its goals. The Board of Directors instructs all executives to manage the risks involved
with the departments that they are responsible for, under the discretion of top executives of such departments and
under the supervision of the Risk Oversight Committee. The risk management activities are reviewed by the Internal
Audit Department, who present the auditing result to the Audit Committee regularly.

The Company appoints the Enterprise Risk Management Team and the Financial Risk Management Team,
under the Organization Development and Risk Management Department, in order to determine the guideline
for managing various risks, to analyze those risks, to collaborate, to monitor the result, and to provide their
recommendations on the risk management guideline to the organization’s employees, and to present the performance
report to the Risk Oversight Committee. 67

The Company specifies the scope of risk management by classifying its risks into 3 levels, as follows.
(1) Corporate Risk: corporate risks may prevent the Company to fail to achieve its organization-level
objectives and goals. Corporate risks are evaluated by top executive of each departments and the Board of
Directors, and are under the supervision of the Risk Oversight Committee.
(2) Business Group Risk: business group risks may prevent the Company to fail to achieve its department-level
objectives and goals. Business group risks are evaluated by top executives of each department and
the Board of Directors, and are under the supervision of the Risk Oversight Committee. However,
each department will be responsible for their own business group risks.
(3) Functional Risk: functional risks may are risks that normally occur with the day-to-day operations. Such
risks are evaluated by each department and branch, according to the important processes, as well as
any processes, in which the department involved may not be able to achieve its plans and goals.