Risk Management
Risk Management Process
To effectively manage risks across all aspects of corporate governance and continuously improve response measures, the Company has established the Uni-President Asset Management Risk Management Policy upon approval by the Board of Directors. This policy aims to enhance Uni-President Asset Management’s ability to manage risks related to market risk, credit risk, liquidity risk, operational risk, legal risk, climate change, and ESG. Furthermore, in light of ESG development trends, the Company has also established the Uni-President Asset Management ESG Investment Management Guidelines and the Uni-President Asset Management Climate Change Management Guidelines. These measures aim to balance the safety, liquidity, and profitability of asset management operations while enhancing the Company’s operational resilience.
The Company’s risk management framework is jointly participated in and implemented by the Board of Directors, all management levels, and all employees. Each level of management ensures that the Board of Directors and senior executives are promptly informed of overall risk trends through upward reporting, while reinforcing employees’ understanding and implementation of internal policies through downward communication. Management levels also refine overall processes through cross-departmental collaboration, systematically integrating the five key aspects of risk management—identification, measurement, monitoring, reporting, and response measures—into daily operations. In accordance with the “three lines of defense” internal control framework, responsibilities for each line are clearly delineated to ensure the effective operation of mechanisms. In addition, the Company continues to manage and address operational and climate-related risks through cross-departmental collaboration.
Moreover, the Company arranges for departments responsible for risk management to undergo regular external education and training to strengthen professional capabilities and enhance awareness of various risks. This year, the total training hours amounted to 64 hours, with a total of 11 participants. The relevant experiences and outcomes are also incorporated as references for refining systems and practical operations.
Three Lines of Defense Model for Risk Management
Three Lines of Defense Framework for Internal Control | Responsibilities | Responsible Departments |
|---|---|---|
First Line of Defense | Responsibilities
| Responsible Departments Business and Operating Units |
Second Line of Defense | Responsibilities
| Responsible Departments Risk Management Unit, Legal Compliance Unit |
Third Line of Defense | Responsibilities
| Responsible Departments Audit Unit |