Risk and Crisis Management

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 Sustainable Development. The committee 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 management and response, and risk information communication and reporting.

Risk analysis matrix

Risk management and response

Response measures for issued that were assessed to have high risk are disclosed below. Please refer to FPCC's official website (https://www.fpcc.com.tw/tw/corporate/risk- management) and annual report for shareholders' meeting for response methods to other risks.

Risk supervision and review

We established risk monitoring mechanisms and performance assessment indicators for risk assessment results. This is to ensure the efficiency and benefits from implementing risk management, and suitable adjustments are made in a timely manner to continue making improvements.

Risk information communication and reporting

With regard to the Company's risk management policy and implementation status, besides submitting risk information management reports to the authorized supervisor, we convene risk management meetings for reporting, review, and supervision of risk management. When necessary, we report major risks to the Board of Directors based on the attributes and impact of the risk. Our risk management information is disclosed on the Market Observation Post System, FPCC's official website, and the annual report in shareholders' meetings for stakeholder communication in accordance with related laws and regulations.