For the purpose of enhancing Chunghwa Telecom’s (CHT) responsible operations and risk identification, in 1996, based on COSO ERM framework, CHT put in place the "Chunghwa Telecom Risk Management Regulations" (the "Regulations" henceforth) for its employees to better performing their duties.  The Risk Management regulations include the followings:

Risk Monitoring and Control System
The Regulations clearly set out the framework and the process of risk management operations as well as the authorities and responsibilities assigned to the respective departments. The Regulations require that CHT carry out risk management of various plans of the parent company and its subsidiaries including the mid-term and long-term development projects, the annual business and contingency plans, new implementation projects and business execution reporting. Furthermore, the Regulations also require that CHT to maintain risks at a manageable level with the aid of the risk management network, systemized records and follow-up management.