Management approach to risk management
Risk management and maintenance
Yulon Motor has adopted a corporate risk management mechanism, which performs a risk assessment beforehand, and developed crisis handling procedures and recovery plan for the material risk incidents, in order to reduce the severity of impacts on our operations. We also continue to improve the risk management mechanism and shorten the reaction time to enhance the completeness of risk management and the effectiveness of risk control.
Systematic risk management
In order to maintain stable operations, the Company has responsible units for management and auditing in the areas of business operations, safety and health, environment, and information, and the Audit Office will include major audit items in the annual audit plan based on the risk assessment results, perform audits on the internal control system, disclose the audit results in the audit report, and follow the Plan → Do → Check → Action (P.D.C.A.) cycle to track improvements.
In 2022, the risk management measures taken under the PDCA model included: management of the Company’s confidential documents, introduction of the IATF 16949 Automotive Quality Management System and the digitalized supply chain early warning system, and all of which were taken charge by different responsible departments.
Structure of risk management organization
Scope of Risk Management
Risk management for key incidents
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Risk |
Risk management content and actions |
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 Risks of business |
The Finance Planning Department is in charge of formulating the Company’s business strategies and goals and controlling the operational plan. By rigorous control and regular update of information regarding technology changes, industry trend and amendments to domestic and international policies and laws, reducing corporate risks. Supervise each unit and subsidiary to include revenue and profit in the annual KPI and track the achievement in order to avoid the risk of operational performance. | ||||||||||
 control |
Facing the global pandemic in the recent 2 years, Yulon Motor has stayed resilient while enhancing its corporate strength. It has constructed a full-dimensional risk management system that keeps the Company on track towards its operational goals and protects the best interests of clients and stakeholders under the concept of“ Innovation, Speed, Teamwork.”
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 risk management |
Has established a foreign exchange hedging operation group in order to reduce the risk of exchange rate fluctuations. In addition, in order to reduce foreign exchange requirements and material prices, we also set annual targets for domestic procurement of parts. | ||||||||||
 Management |
In the face of climate change risk management, Yulon Motor has proactively enhanced the energy efficiency of equipment, implemented energy conservation and waste recovery, and kept in line with the relevant government measures. The main responses are described in short as follows:
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 risk management |
The Safety and Health Office is responsible for tracking, collecting data and management, and it reports the implementation status to the President for approval and subsequently follows up until improvements have been completed based on the risk level of each individual case. On top of the Company’s internal safety audits, the scope of audits has been expanded to include the eight major external suppliers since 2015, Yulon Motor evaluates, guides, audits, tracks and requests the suppliers’ implementation of safety and health management. Reports about each supplier’s improvement progress are reported to the President monthly to ensure zero risk incident internally and externally. | ||||||||||
 management |
Please refer to Information Security and Privacy Management |
