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 26, 2022, 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 2022, the Enterprise Risk Management Committee conducted a training course for middle- and lower-level managers on risk management to strengthen risk perception sensitivity and management techniques.

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.