Risk Management

Organization of the Risk Management Committee

In June 2005, Qisda established the inter-departmental Risk Management Committee (RMC) to pursue the Company’ s goal of sustainable development and operation through consistent risk management based on four categories: strategy, finance, operation, and damage. With the President serving as the committee chair, the Sustainability & Risk Officer serving as the vice chairman, and the top-level executives of different units acting as the committee members, it discusses and determines the risk management strategies, decides on the risk appetite, and sets annual targets and risk performance indicators of Qisda.

 A joint defense mechanism of over 180 companies, centering on Qisda, has been established to convene regular meetings, establish reporting channels, set up an information exchange platform, integrate group resources, and bring the unified strength into full play.

Risk Management Process

The Risk Management Committee holds quarterly meetings and may convene special meetings for significant developments. The Chairman of the RMC outlines the major corporate-level risks for the year, and committee members identify and address risks within their respective units, developing risk mitigation strategies. We establish measurable Key Risk Indicators (KRIs) and track them quarterly to ensure our organizational objectives are met. During meetings, we review major domestic and international issues, regulatory changes, and unusual events, proposing effective response measures. Annually, we report the status of risk management operations to the Audit Committee and the Board of Directors

Business Continuity Management System (BCMS)

Qisda framed risk management policies and organized the Risk Management Committee (RMC) in 2005 in accordance with the ISO 31000 Risk Management–Principles and Guidelines.In 2023, Qisda’s Risk Management Committee identified a total of 34 key risks based on the risk radar chart and risk checklist. We formulate corresponding business continuity plans (BCPs) based on the simulation of various significant risk scenarios, and include these in the “Crisis Management Manual,” taking on a rolling-wave approach to management to lower impact and return to operations as fast as possible when facing risks. Additionally, the Group establishes a joint defense mechanism centered around Qisda, integrating the Group’s resources to strengthen our emergency response capabilities.