Category
Emerging Risks & Response Strategies
The Enterprise Risk Management (ERM) is a vital key to an effective corporate management efficiency to ensure operational continuity. For a constant management of the risks with potential impacts on CHT operation, product, and services, Chunghwa Telecom relentlessly establishes a corporate culture of discovery, management, as well as prevention and mitigation of risks by all personnel to ensure business stability and a sustainable operation.
 Emerging Risk 1 |
 Emerging Risk 2 |
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| Name | Geopolitical Differences Heighten Conflict Risks, making Taiwan a Communications Isolation Island | Taiwan's Aging Population and Low Birth Rate Challenge in the Recruitment of Emerging Tech Talent |
| Description | The outbreak of the Russia-Ukraine war and Israel-Palestine Conflict has triggered increased international geopolitical risks. Taiwan is also vulnerable in terms of geopolitics, with the potential risk of war. Chunghwa Telecom is the main communication infrastructure service provider in Taiwan. Under the geopolitical impact, Taiwan's foundational communication infrastructure is at risk of damage, which also raises the possibility of Taiwan becoming a communication isolation island, thereby affecting the operations and services of Chunghwa Telecom. | 5G and AI are expected to be the mainstream emerging innovative technologies in the next decade. The talents of the said emerging technologies may be employed by companies worldwide through remote working, hybrid working, or other work styles. An outflux of talents from Taiwan is observed for there are competitors from not just domestic companies but also multinational corporations. Taiwan's population trend of aging society and low birthrate is leading to a worsening talent supply year by year, exacerbating the competition for talents. Meanwhile, domestic and multinational companies are attracting brilliant talents with diverse workplace models and generous compensation packages, posing a serious threat to the Company in recruiting and retaining talents for emerging technologies. |
| Impact |
At present, most of the multinational organizations investing in Taiwan and domestic listed companies are the corporate clients of Chunghwa Telecom. The geopolitical risks pose impacts as follows:
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The operational strategy of Chunghwa Telecom is to develop emerging businesses such as cloud, AI, IoT, cybersecurity, etc. Also, to cope with the massive retirement of employees, it is necessary to acquire a large number of talents in the emerging technologies. The failure to improve the attractiveness to emerging technical talents shall lead to the following impacts on Chunghwa Telecom, which in turn will affect the profitability and impact the sustainable business of the Company.
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| Mitigating actions |
To mitigate the communication disruptions brought by geopolitical risks and prevent Taiwan from becoming a communication lone island, CHT has implemented measures as follows to reduce the impacts:
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To recruit, draw, and retain outstanding workforce, including AI talents and emerging talents, the Company designed well-rounded talent recruitment, cultivation, and retention: Talent Recruitment:
Design of incentives and benefits better than the industrial standards, e.g. flexible work hours and locations; provision of childcare benefits better than the statutory standards, among other benefit package; ESOT promotion for employees to become shareholders of the Company. |
