Risk Management System

Risk management system
FPCC continues to observe trends in global risks to achieve sustainable development. The Board of Directors passed the Risk Management Regulations on December 10, 2020, in which FPCC's risk management is mainly carried out by the FPCC Sustainable Development Task Force. The task force identifies potential business risks and jointly evaluates the probability and impact of the risks together with related business departments based on the nature of the risks, appropriately informing management to adjust the Company's business strategy.

Pursuant to the Risk Management Regulations, our risk management system shall include risk identification, risk analysis and assessment, risk management and response, Risk supervision and review and risk information communication and reporting.

Risk identification
The Company's risk management items include strategy risk, operational risk, financial risk, hazard risk, and other risks. Our issue collection includes the 12 risks that are required to be disclosed in accordance with the Regulations Governing Information to be Published in Annual Reports of Public Companies, and we also use the COSO Enterprise Risk Management (ERM) framework to collect emerging risks that we may face in the next five years, which is then analyzed and assessed by the Sustainable Development Task Force and professional consultants.

Risk analysis and assessment
For risk factors that have already been identified, we analyze its attributes and impact, and established suitable quantitative or qualitative assessment indicators to assess the risk level, impact on the Company, and the Company's risk appetite and tolerance.