Risk Management
Following the guidelines set forth by the Operations Management Center, Chroma has formulated “Regulations Governing Organizational Situation Analysis and Risk Management.” This involves defining various risks in accordance with the Company’s overall operational policies, establishing mechanisms for early identification, accurate assessment, effective supervision, and strict control of risks. The company aims to prevent potential losses within the acceptable risk tolerance range and to continuously adjust and improve risk management practices based on internal and external environmental changes. This safeguards the interests of employees, shareholders, partners and customers, enhances company value, and achieves optimal resource allocation.
Our Enterprise Risk Management 3-Step Process is as follows:
Step 1 Risk Scope Identification
![Image](/images/others/motif-02-w3840px.png)
![Environment](/images/basic/overall_environment.png)
Environment
1.1.1 Includes risks related to greenhouse gas emissions management, carbon credit and energy management, from issues such as climate change and natural disasters. It also encompasses risks related to compliance with international and local environmental regulations such as air, water, waste, toxicity, noise emissions management, or environmental assessment requirements.
![Social](/images/basic/overall_society.png)
Social
2.1.1 Operational Aspect: Includes risks to the Company due to occupational safety and health, chemical management, safety protection, emergency response, and other risks caused by improper or erroneous management operations.
2.1.2 Work Environment Aspect: Includes risks arising from issues related to safe working environments for employees or contractors.
![Economic (Including corporate governance)](/images/basic/overall_governance.png)
Economic (Including corporate governance)
3.1.1 Political and Economic Aspect: Includes risks to the Company's finances or operations due to domestic and international political, economic, and regulatory factors.
3.1.2 Industry Aspect: Includes risks to the Company's finances or operations due to domestic and international technological and industrial changes.
3.1.3 Financial Aspect: Includes risks to financial assets or liabilities (including assets and liabilities inside and outside the balance sheet) due to fluctuations in market risk factors (such as interest rates, exchange rates, stock prices, commodity prices, and electricity prices), resulting in various losses.
Step 2 Risk evaluation
![Image](/images/others/motif-02-w3840px.png)
Step 3 Establish risk control measures
![Image](/images/others/motif-02-w3840px.png)
Risk Type
1.1 Environmental Risks
Risk control measures
- Continuously improve processes to reduce carbon emissions in response to environmental protection issues.
- Demonstrate the outcome of technology innovation on outstanding performance and the function of new products and implement green design at all stages of the product life cycle to reduce environmental impact and realize responsible production and consumption.
- Set a goal of net-zero emissions by 2050, starting with assessments of production and office environments, improvements in production processes, and green product design, gradually move from low carbon to net-zero.
Risk Type
2.1 Workplace Hazard Risks
Risk control measures
- Comply with relevant regulatory requirements and establish various operational management guidelines.
- The Occupational Safety and Health Committee regularly reviews compliance with environmental/occupational safety regulations.
Risk Type
2.2 Human Resource Risks
Risk control measures
- Conduct regular manpower inventory and audits.
- Plan and implement employee education, training, and development programs.
- Design competitive compensation and employee benefit measures.
- Comprehensive training and local talent development programs.
Risk Type
3.1 Market Risks, 3.2 Operational Risks, 3.3 Investment Risks, 3.4 Regulatory Compliance Risk
Risk control measures
- In recent years, there has been an exponential growth in the electric vehicle (EV) industry, particularly in the manufacturing of automotive electronic components, batteries, and charging stations. Safety and durability are vital in the automotive electronics sector, while climate change concerns have spurred measures to reduce carbon emissions and adopt new energy sources. Additionally, the demand for products in this industry has been further driven by the growing interest in solar and wind power, among other renewable energy sources.
- Rigorous quality requirements necessitate more complex and extensive testing equipment, and improving testing quality and speed is a key issue in the development of the instrument industry.
- Advanced processes in the semiconductor industry continue to lead the development of ICT industries, and applications in emerging technologies continue to expand.
- Semiconductor manufacturing has been a driving force behind the overall advancement of the industry. The Company has consistently prioritized the development of semiconductor equipment, recognizing it as a key area of focus. The company continues to develop cutting-edge semiconductor testing equipment by the integration of optical, electrical, thermal, and automation software technologies. This strategic initiative is aimed at expanding the Company's presence in advanced manufacturing processes in the years to come.
- Every year, substantial resources are invested in research and development, and through investments in companies with unique technologies, the Company ensures leadership in key technologies. Chroma' s robust integration capabilities across optical technology, mechanics, electronics, thermal control, and software contribute to its competitive edge and facilitate growth. These efforts ultimately align with the achievement of sustainable development.