Sustainable Risk Management

To improve the governance and implement risk management that should receive attention in corporate operations, ASUS established the sustainability risk management platform at the end of 2016. We believe a systematic risk management approach would strengthen the counter-measures in response to risks, thus reducing the chance of major operational risks turning into crisis.

The sustainability risk management platform follows ASUS internal governance structure and internal control mechanism, including 2 teams: 1) the sustainability risk management promoting team: including sustainability development office, financial department, occupational safety department, legal department, human resources department, computing center, and operational units, responsible for identifying risk issues and managing approaches in response to risks. The Chief Sustainability Officer acts as the convener and oversees regular cross-department risk management meetings, drafting approaches for relevant risk issues, and report the annual risk management reports to the Audit Committee; 2) the risk management mechanism supervisory team: audit office is in charge to monitor whether the sustainability risk management follows regulations, while the Chief Auditor reports to the Audit Committee. The Audit Committee will decide whether to report to the Board according to the materiality of the risk reports.

In 2017, the risk management platform systematically conducted the risk identification, risk evaluation, and risk-addressing and -monitoring mechanisms for the first time. The promotion of the risk management platform in 2018 mainly covered three major directions: continuous monitoring of the response strategies and management operations of the major risk issues in 2017; integration of risk management of ISO 9001; emerging risk issues and presentation on the annual risk management report to the Audit Committee in January 2019.

§ Continuous Management - 2017 Material Risks
§ Operational Risks – Newly Added Management Systems
  Integrated ISO management system for risk management at 33 departments at the headquarters and overseas locations.
Established risk control standard documents: ASUS Risk Management Regulations and Risk and Opportunity Assessment Management Regulations.
§ New Risk Issues

The ASUS Risk Management Platform is the first step in developing internal risk culture, to implement corporate risk management through a rigorous risk management system and tracking actions. The risk management promoting team continues to collect information regarding the international sustainability tendency and changes in the development trend in the electronics industry. In the next year, it is planned to link emerging trends and have an overall planning and discussion regarding the integration of the issues, such as cloud, the Internet of Things, and information security. Faced with the impact of emerging risks, it is hoped that internal and external resources will be integrated effectively to create the ability to adapt to changes, thereby creating more potential opportunities for development, through the linkage to the risk control platform.