Risk Management

ANPEC Electronics has the internal ISO-Q01202 "Organizational Background and Risk Management Procedures", and carries out risk assessment on environmental, social and corporate governance issues related to the Company's operation according to the principle of materiality, and integrates risk management and crisis management into daily operation and decision-making process, so as to reduce the possibility of damage and ensure the achievement of the operation plan's objectives. Each year, relevant units shall evaluate the internal control system and operation process according to the risk coefficient, and submit it to the board meeting for approval.

Based on the assessed risks, relevant risk management policies or strategies are formulated as follows:
 

MATERIAL ISSUES	RISK EVALUATION ITEM	SPECIFY DETAILS
Environment	Environmental Impact and Management	Through the implementation of safety management and institutionalized management cycle, the Company has effectively reduced the emission of pollutants and impact on the environment. The Company has obtained ISO14001 certification and is regularly certified. Since the Company is an IC design company, it has no material Scope 1 direct GHG emissions, but the Company still regularly reviews GHG emissions and continue to implement carbon reduction measures based on the results of GHG emissions to reduce Scope 2 indirect GHG emissions.
Society	Occupational Safety	Fire drills and industrial safety education training are held regularly every year to cultivate employees’ ability to respond to emergencies and safety management.
	Product Safety	The products of the Company comply with all laws and regulations, are RoHS compliant, and are free of hazardous substances. The Company has established a customer service hotline and a communication website, and proactively conducts annual customer service satisfaction surveys to enhance our partnership with our customers.
Corporate Governance	Regulatory Compliance	Implementing internal control mechanism to ensure that all employees and operations comply with relevant laws and regulations. Patent application for the products developed to protect the Company’s rights.
	Strengthen the Functions of Directors	Planning education and courses on this topic for the directors and providing them with the information on the latest amendments to the regulations when the occasion arises. The Company purchases liability insurance for the directors to protect their rights.
	Stakeholder Communication	The Company has implemented various types of communication channels to minimize conflicts and misunderstandings. A stakeholder section has been created on the Company's website has been set up, and designated contact persons are available to promptly address and manage feedback from various stakeholders.