Page 44 - 台玻集團2019 CSR英文版

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Sustainability Steady Operation, Excellent Service Quality Sustainable Safe Workplace Social and
Communication Integrity Governance & Innovative Products Operation & Trusted Growth Community Care

Countermeasures for Risk Management

Category Risk Impacts and countermeasures/ Response

Prepare bank financing quotas and negotiate with banks for more favorable financing rates to reduce
Funding risk
funding costs and maintain the normal operation of the company's funds.
Liquidity management risk Increase interest income on liquidity and ensure the profit and integrity of liquidity.

Maintain a robust financial structure as favorable bargaining power when negotiating with financial
Interest rate risk
institutions, and keep close contact with banks to obtain a more favorable loan interest rate.
Financial The exchange rate risk arising from the purchase or sale of non-functional currency pricing is
risk Exchange rate change risk mutually exclusive, so the exchange rate risk is not significant.

Inflation No significant impact on our Company.

× High risk and highly
leveraged investment In 2019 we had no high risk and highly leveraged investment, and no loans to others. Only the loans
× Loans to others and endorsements to our subsidiaries in China were implemented for construction and business
× Endorsements and turnover.
Guarantees

Through the update of monthly inspection on laws and regulations to ensure TGI is in compliance
with all the relevant laws and regulations.
The legal internal control system was established as internal control requirements became strict,
42 Regulatory risk management methods such as contract review were incorporated into the system. After the contract
was electronicist, a legal review was passed.
For example, GHG emissions reporting and management law, the three regulations of water-saving,
labor disputes, and factory safety accidents.

We estimate the impact of regulations on the cost of TGI and analyze the potential savings in
expenditures and costs. For example, the water surcharge, the supply and safety of products and raw
Cost risk materials, and the impact of internationalization on the supply and competition of raw materials. The
production department had replaced the original pumped motor water supply to the factory water
pressure supply to improve water saving.
There is product insurance every year, and premiums and content are increased year by year.
Client complaint risk Actively communicate with customers, understand their needs and market dynamics, and check the
quality requirements of each product.

FDA's strict standards increase the risk of product removal, we had increased the number of
Operational Off-The-Shelf risk insurance projects in order to reduce the impact of the risk.
risk

TGI backed up numerous data and confidential documents on a daily basis. Various permissions are
set in the system to ensure that information is used by appropriate personnel and is not exposed.
Information security risk Information security seminars are held every six months to equip employees with basic concepts
of information security, to avoid being attacked by malware on the Internet, and to reduce the
occurrence of information security incidents and the damage caused by security incidents.

Attract and retain talents with competitive salary levels. In recent years, it has repeatedly adjusted
HR risk salary and introduced the HR system to cope with the risk of system crash and data loss.
Actively participate in talent recruitment activities and cultivate young talents.

In response to the continuous production demand of the production line, the following policies are
made respectively for raw materials, fuels, and energy supplies:
Production risk raw materialsjset safety stock
fueljdesign backup fuel system
energyjThe main equipment in the factory is equipped with an uninterruptible power system