Risk Management

Risk Management Policy

This following information covers the Company's sustainable development performance at its main sites from January 1,2022 to December 31, 2022. The assessed boundaries of risks were mainly on the Company, including existing sites in Taiwan, China, and Thailand. Based on the relevance to the operations of the Company and the degree of their impact on material topics, Chin-Poon (Changshu) Electronics Co., Ltd. and Draco PCB Public Co. Ltd which are our subsidiaries are included in the boundaries.

The Sustainability Committee conducts analysis based on the materiality principle of the Corporate Sustainability Report, communicates with internal and external stakeholders, and reviews domestic and foreign research reports and documents, and integrates the assessment of various departments and subsidiaries to select the material topics related to ESG issues, to formulate risk management policies involving effective risks identification, risks measurement, risks monitoring and risks control, and to take specific action plans to reduce the impact of related risks.

Based on the assessed risks, relevant risk management policies or strategies are formulated as follows:

Material Topics	Risk Assessment Items	Remark
Environment	Environmental Impact and Management	l The Company complies with the requirements of ISO 14001, establishes an environmental management system, and fully considers such significant environmental issues as pollution (e.g. air pollution, water pollution, waste) and water and electricity consumption, etc. and takes into account hazardous substances that may be introduced in the manufacturing process. Therefore, we set up dedicated management units and personnel to prevent environmental pollution, such as air pollution, water pollution, and waste, and to manage energy and resources. l The Company regularly checks greenhouse gas emissions in accordance with ISO 14064-1 to review the impact on our operations. Based on the results of the greenhouse gas inventory, we will continue to implement carbon reduction measures to effectively reduce the risk of Scope 1 emissions and the indirect emissions of Scope 2 greenhouse gases caused by the use of electricity. In April 2023, the greenhouse gas inventory inspection has been completed and verified by a third-party, and its verification certificate is expected to be obtained in June 2023. The annual internal audit plan is planned, aiming at the compliance with various relevant environmental laws and regulations, and auditing that each operating process is in accordance with the regulations.
Social	Occupational Safety	l Employees are the most precious assets of an enterprise. And ensuring the safety and health of employees is the most important responsibility of an enterprise. In order to make our commitment to labor safety and health, the Company has established an occupational safety and health management system to comply with occupational safety and health regulations and other requirements, to be in accordance with ISO45001 and to meet customers’ requirements. The goal of the system is to reduce any and all hazards and risks to our employees. We actively implement environmental and occupational safety and health policies and make sure that all employees can fully understand those policies through proper communication. We have been upholding the occupational safety and health policy of "compliance with laws and regulations, prevention first, safety first, and continuous improvement." l We commit to the following goals: 1. To provide safe working conditions and environment to protect the safety and health of employees. 2. To comply with laws, regulations and other relevant requirements and fulfill corporate social responsibilities. 3. To eliminate hazards and reduce occupational safety and health risks, and improve the working safety of all employees. 4. To continuously improve the occupational safety and health management system and improve the performance of safety and health management. 5. To enhance the communication channels, implement the consultation of workers and labor representatives, and participate in safety and health related activities.
	Product Safety	l The Company's products comply with relevant governments’ regulations and laws and with EU’s Restriction of the use of Hazardous Substance (RoHS). At the same time, in order to ensure the quality of customer service, we set up a customer service dedicated communication channel and actively conduct customer service satisfaction surveys on a regular basis every year to strengthen the collaboration with customers. l In order to avoid losses caused by a variety of risks, the Company has also taken various insurance policies, such as product liability insurance (the policy number is 0500-22APD0300066 and the insured coverage is USD 10 million.), etc., to ensure that we have sufficient capacities and resources to carry out the following recovery when risks occur, and indeed keep our commitments to customers.
Corporate Governance	Socio-economic Issues and Legal Compliance	l By establishing an organizing framework of corporate governance and implementing an internal control system, we ensure that all employees and operations of the Company comply with relevant laws and regulations. l The Company will apply for patents for the products developed by it to protect its rights and interests.
	Enhancement of the Functions of Directors	l We plan education and trainings on relevant topics for directors, and provide directors with the updated information on the latest regulations, system development and policies every year. l We have taken directors' liability insurance for directors to protect them against lawsuits or claims.
	Communication with Stakeholders	l In order to prevent stakeholders from having different perspectives with the Company, which may cause misunderstandings and lead to operational risks or litigation, the Company analyzes on a yearly basis the material topics which our stakeholders care about most. l The Company has established a variety of communication channels and been communicating actively to reduce confrontation and misunderstanding. We have set up the dedicated mailboxes and e-mail address for investors, in which the spokesperson is responsible for responding the received messages and opinions.