Page 43 - 台玻集團2019 CSR英文版

2019 Corporate Sustainability Report TAIWANGLASS

2.3 Risk Management

To prevent risk during operation or sudden disruption of operation, TGI has all departments conduct periodically reviews comprehensive
risk evaluations, implement various risk management measures for a sound and comprehensive risk management operation. Risk
management involves lowering the occurrence rate and reducing the impacts of recognized risks. The goal of risk management is to achieve
sustainable operation, by strengthening risk management, lowering business risk exposure and improving crisis management.

Quality Control
Data Mainframe Damage Financial risk
Risk of
Factory Accidents Sudden Risk During Stable Production Capabilities
Continuous
Business
Operation Accidents Disruption Operation Energy Cost & Efficiency
Water Dependency
Business Continuity Maintenance of Occupational Safety

Management Import/Export Regulations Barrier

Government Regulations 41
Penalties by Government Physical Transition Unethical Conducts

Local Residents' Pleads Risks Risks Product R&D & Competitiveness
Natural Disasters Supply Chain Management
Clients' Requests

Climate-Related Risks

Also, in response to the increasingly serious climate change, TGI also began to pay attention to climate-related risks; at present, the
assessment of the risks associated with climate change at each factory includes: regulatory risk, raw material/energy cost risk, natural
disaster risk, and environmental safety risk. The main effects can be attributed to two major categories:

Changing market conditions Natural disasters caused by climate change have injured
Transformation and stricter regulations Physical or trapped factory staff or damaged equipment in the
risks risks
caused by climate change. factories, which has forced operations to be interrupted.

In response to the transformation risks of climate change, TGI has long paid attention to changes in laws and regulations and
responded to relevant regulations in advance; at the same time, it has paid attention to changes in market raw materials and customers'
low-carbon transformation demand trends for future sustainable growth. In the face of physical disaster risk, each factory of TGI has an
emergency response process, and there are usually plans for uninterrupted operations to ensure that the company's overall operating
conditions are not in danger. In the future, we will continue to focus on the trend of climate change and plan to improve the level of risk
management countermeasures.