SinoPac Securities' Board of Directors approves the Risk Management Policy. Besides the credit, market, and operational risks covered by the Basel Accord, the risks it governs include liquidity, legal, strategic, emerging, and climate change risks. Each type of risk has its own rules and measures, with limits, business unit authority, and operating standards, so as to establish mechanisms for risk identification, measurement, assessment, and management, and to structure the risk management system.
A Risk Management Committee sits under the Chairman, who serves as convener, with the head of the risk management unit as executive secretary. The Committee reviews the risk management policy, the risk management system, and overall risk limits, and assists the Board in overseeing risk management matters. At each regular monthly Board meeting, the Risk Management Department presents a risk management report. The Committee meets quarterly in principle, with extraordinary meetings as needed. It met six times in 2025, mainly to review the risk management policy, risk management mechanisms for new business types, and oversight of units' risk management activities.
| Line | Responsible unit | Scope of responsibility |
|---|---|---|
|
First line |
Business units |
Implement self-directed risk monitoring in business operations and set operating standards. |
| Second line |
Risk management and compliance units |
Set risk policies and implement risk control systems. Carry out legal risk control and ensure that business operations and the risk management system comply with laws and regulations; oversee AML/CFT rules and systems. Assist subsidiaries' management, risk management, and compliance units in carrying out the second line. |
| Third line | Audit unit |
Incorporate operating standards and risk control measures into the audit system and review them independently. |