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 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.
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 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.
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 Mechanisms
Operating Status of Risk Management
• On November 2, 2022, D-Link convened the ESG Committee meeting. The annual risk management operating status was reported to the ESG Committee.
• In accordance with the promotion measures of the competent authorities, the Audit Committee was appointed to supervise the operational mechanisms related to risk management, and the revised “Risk Management Policies and Procedures” was approved by the Audit Committee and the Board of Directors on November 4, 2022.
• On November 4, 2022, the revised President Performance Indicators were reported to and approved by the Board of Directors to include risk management indicators in the evaluation items.
• On December 15, 2022, the course of risk management education was held. The trainees included the Chairman, CEO, President, and supervisors of various units. The number of participants in the course is 24, with a total of 60 training hours.
• In line with the requirements of “Corporate Governance 3.0 Sustainable Development Road Map” and “Best Practice Principles on Risk Management for TWSE/TPEx Listed Companies” released by the Financial Supervisory Commission, D-Link has appointed KPMG to optimize its risk management operations. The project was completed on April 10, 2023.
• Risk management meetings were held on February 15 and June 28, 2023. The risk management operations will be reported to the board of directors on November 14, 2023.
• On June 20, 2023, we engaged
a risk management expert to hold a professional development course titled
“New Thinking of Enterprise Risk Management- Integrating Strategies
Development and ESG Risk Management” for directors and senior executives. The
number of participants in the course is 15, with a total of 45 training hours.