■ An inherent risk management culture
The vision of risk management is to protect assets, enhance customer service quality
and improve shareholders' values, while hoping to control the possible risks generated
in various business operations within a tolerable range, and to achieve a reasonable
balance between risks and returns while securing adequate capital to back up business
development. To effectively identify, assess, monitor and control all types of risk, E.SUN
has always followed the philosophy of "no services or operations can be considered
beyond risk" while considering the balance between risk management and performance
assessment. The aspect of risk management has been included in performance appraisal
to uphold the highest guiding principles of risk management: safety and liquidity first,
profitability second, growth next, and always pay attention to the public interest.
■ Risk management organization and management
E.SUN FHC Board of Directors is the highest governing body in risk management
mechanism. The Board of Directors approves overall risk management policies and
important decisions based on the overall business strategies and environment and takes
ultimate responsibility for overall risk management.
To strengthen risk governance communication, coordination, reporting, and
recommendation within the Board of Directors, the Company has established a boardlevel
Risk Management Committee responsible for reviewing business risk management
policies, ensuring compliance with international risk management regulations, promoting
and creating risk management systems, and reinforcing the functions and duties of
the Risk Management Committee over time. For example, recently climate change risk
factor has been incorporated in the risk appetite mechanism, and stress tests have
been performed to evaluate the impact on the Company's overall risk level to decide the
quotas for the Company's various business operations. We also has the Risk Management
Committee under the management level and convenes quarterly and when necessary,
subject to the needs for strategic development or environmental changes. The RMC
reviews the appropriateness of risk mitigation measures proposed by risk management
units at every level. The Committee is responsible for matters pertaining to credit risk,
market risk, operational risk, and asset & liability risks. Reports of overall risk management
implementation status are made to the Board of Directors periodically
Risk management units at every level are responsible for identifying and managing risks
related to their products, activities, processes and systems as well as for establishing a
risk tolerance limit and monitoring indicators to monitor risks of the unit. The units will
an SOP and submit risk reports based on their business content.
■ The three lines of
defense in risk management
■ Established the risk management awareness
Extend risk horizon through training
To raise risk awareness and to systematically extend the risk horizon, E.SUN ensures
that every E.SUN employee starts learning about E.SUN's core philosophy regarding
risk, discipline and process since the first day on the job. E.SUN employees in different
departments and at different stages of their careers are also provided with appropriate
education and training on risk management.
Orientation for new recruits
Every new recruit will complete basic risk management courses during orientation in order
to understand the risk management culture at E.SUN, self-discipline and self-management
E.SUN implements business-related risk management in all professional training programs,
and continuously discusses and focuses on the important and common risk issues among
all product lines. This approach ensures that risk management becomes an inherent key
factor in all business processes.
Developing middle management
E.SUN employees gain a better understanding of E.SUN's organization and products once they
are familiar with product lines and business aspects. They will thus understand the importance
of balancing risk and opportunities of product lines, Furthermore, the mid-level manager
program is aimed to help employees better understand risk management of their own business
activities and understand the responsibilities of mid-level managers.
Continuing training for managers
These courses are designed to help managers respond to external challenges and risks
to lead reformations and formulate strategies that prioritize cross-departmental integration
within the group. The risk management culture was ingrained on the basis of corporate
governance, making risk awareness an irreplaceable foundation stone.
In addition, product benefits and performance appraisal are included in risk management
as a measuring factor. In addition to the understanding of the risk costs behind each
product revenue, daily business operation risk control is also included in performance
assessment in order to ingrain the risk culture and awareness.