Risk Management

Risk Management

Establish strategies and processes to respond to corporate-level systematic risks, in order to effectively control corporate risks

 

Our risk management team led by our Chief Financial Officer under the ESG and Climate Committee is in charge of overseeing the entire company’s risk identification activities. Through the joint efforts of research and development, manufacturing, sales, finance, legal, human resources, IT systems, and ESH management units, we mitigate such risks and seek the corresponding opportunities.

Risk management mechanisms

 

Our risk management mechanisms consist of identification, analysis, and evaluation processes. The analysis process assesses the frequency, impact levels, and control levels. Risk scope covers financial, strategic, operational, and disaster management aspects. We use a matrix to analyze and manage risks in order of priority.

 

Risk management structure

 

In accordance with the risk management standards and guidelines of ISO 31000, and from a business continuity perspective, we review our response capabilities to potential risks, including financial considerations of market and financial volatility risks as well as non-financial risks from such impacts as regulatory compliance, IT security, climate and environmental protection, and social issues.

 


Internal Audit System

AUO's internal Auditing Administration Division is an independent unit directly reporting to the Board of Directors. The unit consists of eight people, including the auditing executive and full-time audit staff. In addition to making audit report to the Board of Directors at regular meetings, reporting also takes place periodically or as needed basis to the Chairman of the Board (CEO) and the Audit Committee.

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Business Continuity Plan

To realize the goal of business continuity, AUO is continuing to monitor potential risks that have an impact on company operations and invest resources towards controlling and countering such risks. The Business Continuity Plan (BCP) is a part of management activities and it can help with maintaining an acceptable standard of critical business activities when something happens to the Company. Since BCP was introduced by AUO in 2008, the Company has completed exercises for fire, earthquake, chemical spills, epidemics and raw material shortages. Corresponding risk management strategies were also developed.

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