• Sustainability
    Airtac International Group
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  • Risk Management Policy and Procedure

    The company's risk management policy is to define various risks in accordance with the company's operating policies, prevent possible losses within the acceptable risk range, and improve risk management to achieve the company's goal of sustainable operation. The board of directors approved the "Risk Management Policy and Regulations" on August 5, 2022.

    Risk Management Category

    We regularly perform a risk assessment in accordance with the “Risk Management Policy and Regulations” while creating a risk map to continue to improve the risk management mechanism and identify numerous risks, including development strategies, sales management, product development, production, delivery services, human resources, supplier management, equipment assembly, quality management, document management, internal auditing, management review, and continuous improvement. We also emphasize risk management concerning climate change and information security. Identified risks are categorized into low, medium, and high risk to facilitate formulated response strategies and programs.

    Risk Management Organization

    1.Board of Directors:The board of directors is the highest unit of company’s risk management, formulating risk management policies and ensuring the effectiveness of risk management.

    2.Operating Meeting:The executive meeting or operation meeting chaired by the general manager is responsible for managing and reviewing the company's risk management implementation status, risk assessment and risk-taking situation.

    3.Financial Department:The financial department is independent of all business departments, and carries out various financial and investment risk monitoring.

    4.Internal Audit Office:The internal audit office is an independent unit, affiliated to the board of directors, responsible for monitoring and regularly evaluating the risk management implementation status of each unit.

    5.Each Business Unit:Responsible for analyzing and monitoring the relevant risks to ensure that the risk control mechanism and procedures can be effectively implemented.

    Risk Assessment

    The company conducts relevant risk assessments based on the principle of materiality, and based on the assessed risks, formulates relevant risk management responses measures as follows:

    Risk Category

    Potential Risk

    Response Measures

    Financial risk

    Interest rate fluctuations

    Regular evaluation of market capital status and bank interest rates to assess the impact of interest expenses of financing.

    Exchange rate fluctuations

    1. Natural off-setting principles are adopted in terms of currency risks. Forward foreign exchange contracts and borrowing foreign currency debt may be adopted as necessary and appropriate.

    2. Keeping in close contact with the bank and monitoring changes of the foreign currency market at all times in order to provide related supervisors with exchange rate change trends. Adjustments can be made immediately if there is an occasional change in the currency of receipt or payment.


    Flexible adjustment of procurement and sales strategies, cost structures and transaction conditions to effectively respond to the impact of inflation or deflation.

    Investment risk

    Loaning funds to others

    The objects that AirTAC lends fund to, in principle, are affiliated companies with centralized capital allocation. The balance of these loans is handled in accordance with Article 15 of the Company Act and implemented after approval by the board of directors.

    Endorsements and guarantees

    The Company mainly provides endorsements/guarantees to subsidiaries and it is handled in accordance with AirTAC’s “Operating Procedures Governing Loaning of Funds and Making of Endorsements/Guarantees.”

    Derivatives transactions

    Derivative transactions are not for arbitrage and speculation purposes.

    Purchase risk

    Supply interruption

    1. Regularly review the safety stock quantity of all raw materials and make a timely request of reasonable quantities

    2. Proactively develop qualified suppliers to increase supply sources.

    Climate change risk

    Climate disaster

    Implement energy conservation by setting up related facilities, such as lightning rods, water pumps, ventilators, municipal water storage equipment, special air-conditioning equipment in the machine room, standby generators and waterproof gates, and more.

    Information security risk

    Abnormal information system

    1. Information security-related regulations have been established to strengthen the prevention of disasters, information security, monitoring, notification mechanism, and the handling of abnormalities.

    2. In terms of the management and backup important systems, an off-site back-up system has been established and a dedicated unit has been set up to oversee related matters.

    Operation of Risk Management

    The company has established "Risk Management Policy and Regulations", and will report its operation to the board of directors on a regular basis every year since 2022. The latest date of submission to the board of directors is November 2, 2022.