Risk Management Policy
To achieve the goal of sustainable business operations, the Board of Directors of Etron has approved the “Risk Management Policies and Procedures”. Through the internal risk management organization, the Company systematically assesses and manages risks that may affect the achievement of corporate goals. Risk management is integrated into operational activities and daily management processes to achieve corporate goals, enhance management efficiency, provide reliable information, and effectively allocate resources.
Risk Management Organization and Responsibilities
- Board of Directors: The Board of Directors is the highest supervisory unit for risk management at Etron.
- Risk Management Committee: The President serves as the Chairperson to convene the Risk Management Committee. An Executive Secretary is appointed to convene the Risk Management Promotion Team based on the Company’s business characteristics, risk nature, and operational activities. The team is responsible for formulating, planning, and executing various risk management activities and periodically submitting implementation reports.
- Operating Units: Each operating unit of Etron collaborates with the Risk Management Promotion Team to conduct risk identification, analysis, assessment, and response, and periodically reports on the implementation of risk management control procedures within their respective units.
Risk Management Process
1. Risk Identification
Based on the Company’s operational development strategy and goals, risk sources are identified across Environmental, Social, and Governance (ESG) aspects by the Risk Management Committee members.
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2. Analysis & Assessment
Considering current environmental resources, probability and impact assessments are conducted for risk factors.
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3. Risk Response
Determine intolerable risk items and formulate strategic risk goals.
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4. Monitoring & Review
Review and determine major risk items, require operating units to take responsive measures, and report to the Board of Directors annually.
Key Execution Points of Risk Management
The Risk Management Team and various operating units of Etron perform risk identification and analysis in accordance with the Company’s strategic goals and business execution. Subsequently, based on risk impact and tolerance, priorities and control mechanisms are formulated to ensure appropriate response measures can be taken when facing risks. Management procedures and execution results shall be recorded in detail and reported to the Risk Management Committee periodically.
Risk Reporting and Disclosure
The risk management execution process and its results shall be properly recorded and preserved. Information related to risk management shall be disclosed in the Annual Report and Sustainability Report in accordance with relevant regulations.
Revision of Risk Management Procedures
Etron constantly monitors the development of international and domestic risk management systems to timely revise risk policies and enhance management execution effectiveness.
Implementation Status
Etron actively promotes the implementation of risk management mechanisms and reports the operation status and execution effectiveness of risk management to the Board of Directors annually.
2025 Implementation Status:
- Each operating unit has completed risk identification, risk analysis, and risk response plans, and has added relevant operational control points according to the risk response plans to strengthen risk management.
- The Company reports on its performance to the Board of Directors annually. The performance report for 2025 was submitted to the Board of Directors on November 10, 2025.