Risk Management

Risk Management

Shaping D-Link’s Risk Management Culture

D-Link adopts the existing administrative structure and internal control mechanism to manage risks associated with business operations. According to the risk management policies and procedures, the Board of Directors is the highest management unit of risk management, and the Audit Committee is responsible for supervising the implementation of the group’s risk management policies. The President (CEO) serves as the convener of the risk management taskforce, and jointly plans, executes and supervises the risk-related management affairs with senior executives of the operating units to establish a good protection mechanism in the daily maintenance. Risk measurement indicators are developed for key risk categories to review risk management mechanisms regularly, and strategies, control objectives, internal control systems and procedures are established to effectively prevent and manage risk-related company operations.

 

Risk Management Framework

Risk Management Framework

Board of Directors:
The Board of Directors is the highest governance for risk management, aiming to comply with the laws and regulations and enforce risk management in the company. They clearly understand the operational risks, ensure the effectiveness of risk management, and ultimately be responsible for risk management.
 
Audit Committee:
The audit committee is responsible for implementing the risk management issues, overall implementation, and coordination of the operation and reports to the Board of Directors at least once a year.
 
Risk Management Taskforce:
The President (CEO) acts as the convener and convenes risk management meetings every quarter. The duties of the Risk Management Taskforce are responsible for planning, implementing, and supervising risk management-related matters and reporting the implementation of risk management to the Audit Committee at least once a year.
 
Corporate Auditor’s Office:
The Corporate Auditor’s Office is responsible for internal control and internal audit. They develop an annual audit plan and conduct various audit operations based on the results of risk management every year. They assist the Audit Committee and the Board of Directors in overseeing potential risks associated with policy implementation, ensuring effective control over all risks, and regularly reporting audit results to the Audit Committee and the Board of Directors.
 
Operating Units:
Each operational manager is responsibility for risk management and is accountable for analyzing and monitoring the relevant risks in the subordinate units to ensure the effective implementation of the risk control mechanism.

Risk Management Procedures

Operating Status of Risk Management

  • In order to comply with the requirements of the “Corporate Governance 3.0 – Sustainable Development Blueprint” and the “Risk Management Best Practice Principles for TWSE/TPEx Listed Companies” issued by the Financial Supervisory Commission, the Company appointed KPMG Enterprise Management Co., Ltd. to provide risk management operation optimization services to build the risk management measurement standards and identification of the Company’s top ten risks in 2023. This project was completed on April 10, 2023.
  • Responding to the Company’s current practical risk management operation mechanism, the Company amended the “Risk Management Policies and Procedures” and such are implemented after approved with the resolution of the Board of Directors on May 10, 2023.
  • The Company complies with the “Risk Management Policies and Procedures,” to convene the risk management meetings, on quarterly bases, on February 15, June 28, and October 16, 2023 as well as January 22, 2024, to plan, implement and supervise quarterly risk management operations, to ensure that all risks are effectively managed.
  • Responding to the Company’s top ten risks identified at the beginning of 2023, the Company has reported to the Board of Directors on the implementation of the risk management action plans in 2023 on February 27, 2024, to manage and control the risk items through KRI key risk indicators for mitigating the impact of risks, and reassessing the Company’s top ten risks in 2024.

Top 10 risks of the Company identified at the beginning of 2023

2023 Risk Assessment Matrix

Risk Mitigation Plan

* Items marked in orange indicate significant risks.