Sustainability

Risk Management

 

 

Chunghwa Telecom places great emphasis on business risk management as a means of ensuring stability against impacts from the external environment and internal operations. It has “Risk Management Policy” in place to guide employees’ actions. The board of directors outlines the Company’s risk management policies, framework and culture. Secretariat assists the board in the implementation of risk management practices throughout the Company. The Audit Division audits risk practices and reports findings back to the board.

On February 1, 2016, the Company established our Risk Management Committee consisting of the President as the convener and senior managers as members of the committee. The committee supervises risk management throughout the organization, and is responsible for prioritizing the identified risks, formulating response strategies to key risk issues, and reporting to the board of directors at times deemed necessary.

 

Chunghwa Telecom’s risk management practices involve ongoing analysis of operational goals, accuracy of financial reports, cybersecurity risks and impacts of high-risk events. These findings are constantly reviewed to ensure that all business risks can be identified and controlled, and thereby maintain business operations while protecting stakeholders’ interests. We also have an enterprise risk management (ERM) system in place to control risks associated with our businesses. Risk managers have been assigned in all departments to monitor risk targets and risk events, and report findings on a monthly basis. Risk managers are also involved in the review and adjustment of risk measures, assessment of risk impacts, and execution of systematic records, management, and follow-up tracking.

We use a “risk map” for assessing regulatory risks, network maintenance risks, market competition risks, and financial risks. For every major concern identified in our operations, we conduct intensive sensitivity analysis and stress-testing to decide whether we should take steps to accept, transfer, mitigate or avoid the associated risks, thereby minimize our possible losses. Risk management expenditure comprises of three main categories: insurance premium, risk control costs, and risk administration expenses; details of which are expected to be disclosed in 2017.

 

 

 

 Please refer to our tax policy:     Tax_Policy.pdf

 Please refer to: Climate Change and Environmental Risk Management.pdf

 

 

Chunghwa Telecom places great emphasis on business risk management as a means of ensuring stability against impacts from the external environment and internal operations. It has “Risk Management Policy” in place to guide employees’ actions. The board of directors outlines the Company’s risk management policies, framework and culture. Secretariat assists the board in the implementation of risk management practices throughout the Company. The Audit Division audits risk practices and reports findings back to the board.

On February 1, 2016, the Company established our Risk Management Committee consisting of the President as the convener and senior managers as members of the committee. The committee supervises risk management throughout the organization, and is responsible for prioritizing the identified risks, formulating response strategies to key risk issues, and reporting to the board of directors at times deemed necessary.

 

Chunghwa Telecom’s risk management practices involve ongoing analysis of operational goals, accuracy of financial reports, cybersecurity risks and impacts of high-risk events. These findings are constantly reviewed to ensure that all business risks can be identified and controlled, and thereby maintain business operations while protecting stakeholders’ interests. We also have an enterprise risk management (ERM) system in place to control risks associated with our businesses. Risk managers have been assigned in all departments to monitor risk targets and risk events, and report findings on a monthly basis. Risk managers are also involved in the review and adjustment of risk measures, assessment of risk impacts, and execution of systematic records, management, and follow-up tracking.

We use a “risk map” for assessing regulatory risks, network maintenance risks, market competition risks, and financial risks. For every major concern identified in our operations, we conduct intensive sensitivity analysis and stress-testing to decide whether we should take steps to accept, transfer, mitigate or avoid the associated risks, thereby minimize our possible losses. Risk management expenditure comprises of three main categories: insurance premium, risk control costs, and risk administration expenses; details of which are expected to be disclosed in 2017.

 

 

 

 Please refer to our tax policy:     Tax_Policy.pdf

 Please refer to: Climate Change and Environmental Risk Management.pdf