Risk Management

ANPEC Electronics has the internal ISO-Q01202 "Organizational Background and Risk Management Procedures", and carries out risk assessment on environmental, social and corporate governance issues related to the Company's operation according to the principle of materiality, and integrates risk management and crisis management into daily operation and decision-making process, so as to reduce the possibility of damage and ensure the achievement of the operation plan's objectives. Each year, relevant units shall evaluate the internal control system and operation process according to the risk coefficient, and submit it to the board meeting for approval.

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

SIGNIFICANT ISSUES	RISK ASSESSMENT ITEM	RISK MANAGEMENT POLICIES OR STRATEGY
Environment	Environmental Impact and Management	Through the implementation of process safety management and systematized management cycle, the emission of pollution and the impact on the environment is effectively reduced. Obtained ISO14001 verification and regular certification. As the Company is an IC design company, it has no direct greenhouse gas emissions in Category 1, but it still regularly reviews the greenhouse gas emissions and continues to implement carbon reduction measures according to the results, so as to reduce the indirect greenhouse gas emissions in Category 2.
Society	Occupational Safety	Fire drills and work safety training are held regularly every year to cultivate employees' ability of emergency response and self-safety management.
	Product Safety	All products comply with respective laws and regulations and EU RoHS specifications with no hazardous substances. At the same time, the Company has set up a customer service dedicated line and communication website, and regularly takes the initiative to conduct customer service satisfaction survey every year to strengthen the cooperative relationship with customers. In order to transfer the product liability risk, the Company has purchase product liability insurance of NT$420 million with the certificate No. 1AOP110010.
Corporate Governance	Legal Compliance	Firmly implement the internal control mechanism to ensure that all employees and operations comply with relevant laws and regulations. Apply for patents for the products developed to protect the rights and interests of the Company.
	Strengthening the Functions of Directors	Plan relevant training topics for directors and provide the latest regulations from time to time. Purchase liability insurance for directors to protect their rights and interests.
	Stakeholder Communication	Establish various communication channels to reduce confrontation and misunderstanding; the company's website has a special area for stakeholders, and there are special windows for different stakeholders in order to respond and deal with them in real time.