Risk Management Policy
The risk management mechanism includes identification, analysis, evaluation and other processes, which consider the frequency of occurrence, the degree of impact and the degree of control for quantitative assessment, covering strategic considerations, operational considerations, financial considerations and hazard event considerations, etc., to manage risk prioritization.
- Strategic considerations:
- Compliance with laws and regulations and the response to changes thereto
- National policy development
- Changes in the technology and industrial markets
- Technology Research and competitive advantage
- Market demand and capacity expansion
- Operational Considerations:
- Customer and Supplier Concentration
- Information Security (InfoSec)
- Intellectual Property Rights (IPR)
- Talent Recruitment
- Corporate Image
- Financial considerations:
- Interest rates, exchange rates, inflation, deflation, taxes
- Strategic investments
- Hazard event considerations:
- Natural disasters such as earthquakes
- Fire or chemical spills
- Climate change
- Water and electricity supply
- Other (e.g. Covid-19)
Governance of TCFD Climate-Related Risks and Opportunities
