Risk Management

The Risk Management Committee is supervised by the Board of Directors and the Audit Committee, and risk management is carried out through the Risk Management Committee (RMC). The Risk Management Committee, chaired by the president, the Head of the Environmental Safety and Risk Management Division as the Executive Secretary, and the heads of the Company‘s first-level department as members, holds RMC meetings every six months to discuss the Company’s major risks and risk control matters. RMC be proactive risk management mechanism that facilitates related units to promptly address risk events through a set of risk management procedures to lower or avoid the impact of risk in order to ensure the company’s sustainable operations.

MetaAge summarizes the risk categories into eight aspects: sales risk, product and technical service risk, financial risk, information security risk, compliance risk, human resources risk, climate risk and supply chain risk, covering a total of 32 potential risks under each category of risk, assessing the risk degree with risk measurement indicators for each category. MetaAge regularly reviewing the risk management mechanism, and establishing response strategies and risk control measures. Additionally, MetaAge‘s Risk Management Committee reports annually to the Board of Directors on its operations and the business implications of identified risks.

Risk Management Process

Through the risk management process, we identify and assess all inherent risks and develop corresponding countermeasures and management measures to lower or avoid any potential impact caused by risk events.

Build a risk control environment: For the current scope of operation and the fields to be developed for venture business in the future, the associated major risks should be understood in order to fully keep track of the strengths and weaknesses of the Company.
Identify risks: The Risk Management Committee is responsible for identifying risks that have an effect on the Company while it tries to realize sustainable operation and achieve its operational performance goals. Once risks are identified, actions shall be evaluated and taken.
Evaluate all potential risks: The Risk Management Committee shall evaluate the risks identified, the extent of impacts and possible chances of potential risks and evaluate the required risk management taking into consideration the risk tolerance associated with each item.
Develop response strategies and measures: Evaluate possible options of risk management strategies, define and enforce risk management action plans; it is required to specify the choice of risk management strategy.
Supervise and review: Risk management is the responsibility of the risk management unit. The Company's Board of Directors, on the other hand, reviews the risk management report to ensure effective implementation of risk management policies.
Internal and external communications and negotiations: The Company has effective communication and reporting channels in place in its risk management system so that information on risks inside and outside the Company can be identified, evaluated, and communicated adequately.

Risk Assessment Accomplishments

The company formally established the Risk Management Committee on August 5, 2011, and held its first risk management initiation meeting on November 29 of the same year. Annually, in the first quarter, the company reports to the board of directors on the operations and business content related to the Risk Management Committee, including risk categories, potential risks, impacts on corporate profits and losses, risk tolerance, response strategies, and the status of risk control measures taken. The 2023 risk management operations were approved by the board of directors on February 29, 2024.

The 2023 risk management operations were as follows:

In 2023, two Risk Management Committee (RMC) meetings were held, during which the achievement rates of Key Risk Indicators (KRI) were reported to the chairman and committee members. Additionally, three major company-level risks were identified for 2024: stability of rights management, preference of original manufacturers, and business professionalism.
The 2023 risk management execution results included controlling five KRIs in the areas of sales and business risk, financial risk, information security risk, compliance risk, and human resources risk, all of which achieved a 100% completion rate.

Potential Risks and Countermeasures

The Risk Management Committee of MetaAge compiles risk checkup items sorted out by respective units after discussions, including risk category, potential risks, impacts on corporate gains and losses, and response strategies as well as risk control measures adopted.