Enterprise Risk Management

The company has actively promoted and implemented the risk management mechanism since 2018, and began reporting its operations to the Nominating Committee and the Board of Directors at least once a year in 2020.
 

• The Enterprise Risk Management Committee submitted the company’s risk management policies, procedures (mechanisms), areas, and organizational structure in the company's enterprise risk management manual to the Nominating Committee and the Board of Directors, and received approval on February 26, 2020. Since 2021, it has reported risk management relevant affairs to the ESG Steering Committee. In addition, the Committee developed the "Enterprise Risk Management Manual" standards in 2020 as the guideline for all employees to implement risk management.

• On October 25, 2023, the Enterprise Risk Management Committee submitted its report on major risks related to strategy, operations, finances, and hazards; countermeasures; and results of risk management implementation. The report also took into account environmental, social, and corporate governance risks. Approval was obtained from the Nominating Committee and Board of Directors through the ESG Steering Committee. Aside from geopolitical risks, which are subject to relatively uncontrollable external factors, all other major risks in the near term can be controlled to medium and low risks levels. The Company’s operations and investments have not been significantly impacted, and developments related to identified risks will continue to be monitored.

• In the second half of 2023, the Enterprise Risk Management Committee conducted a training course for indirect labor of the Company on introduction to enterprise risk management. The goal was to establish a basic knowledge of enterprise risk management for all employees, integrate risk management awareness into daily management and operational activities, shape and deepen the culture of enterprise risk management, and enhance the ability to implement the first line of defense in enterprise risk management throughout the Company by using practical case studies.

UMC targets strategic, operational, financial, and hazard risk areas, identifies key risks and formulates countermeasures, including environment, social, corporate governance and emerging global risks related to the company's operations. For detailed response measures, please refer to 2022 Sustainability Report Chapter 1.2 Implementing Risk Management.