Sustainable Governance
Risk Management
To establish a comprehensive risk management system and ensure steady business operations aligned with the goal of sustainable corporate development, the company has formulated a "Risk Management Policy and Procedures." This policy emphasizes a cautious examination of potential internal and external risks from the perspective of sustainable business operations. By implementing an effective risk management mechanism, the company integrates risk management into its operational activities and daily management processes, enhancing the efficiency of risk management functions, providing reliable information, and allocating resources effectively. The objective is to reasonably ensure the achievement of the company's strategic goals.
The company assigns the Audit Committee to perform the functions of a Risk Management Committee, with the Finance and Accounting Department serving as the driving and executing unit. Through a robust risk management framework, the company manages various risks that could impact the attainment of its objectives.
Organizational Structure and Responsibilities
As the highest decision-making body for the company's risk management, the Board of Directors is responsible for approving risk management policies, procedures, frameworks, and related measures. It oversees the implementation of various risk management systems to ensure they align with the company's operational strategies and that the management mechanisms operate effectively.
The company assigns the Audit Committee to perform the functions of the Risk Management Committee. The committee is responsible for reviewing the risk management policies and related measures, assessing their applicability and execution effectiveness, and guiding resource allocation. It reviews the status of risk management implementation, provides necessary improvement suggestions, and reports to the Board of Directors at least once a year.
The Internal Audit Office conducts audits based on risk assessments, providing management with timely insights into existing or potential internal control risk issues. This ensures compliance with established regulations and control procedures.
As the executing management unit for the risk management policy, the Finance and Accounting Department is responsible for driving the company's risk management operations:
- Formulating risk management policies, procedures, frameworks, and related measures.
- Planning risk management-related training to enhance overall risk awareness and culture.
- Assisting and supervising the execution of risk management activities across departments, ensuring effective interdepartmental interaction and communication.
- Developing standards for risk identification, analysis, and evaluation, and monitoring the control of significant risk issues.
- Implementing the Board of Directors' risk management decisions.
- Regularly compiling and reporting the company's risk management execution status to the Audit Committee.
Each unit's supervisor is responsible for the identification, analysis, evaluation, and response to risks within their respective units. They are also tasked with establishing relevant crisis management mechanisms when necessary, ensuring the effective implementation of risk management and related control procedures in alignment with the risk management policy.
Risk Management Operations
The company conducts comprehensive risk analysis through its risk management procedures, taking into account the company’s size, industry, business characteristics, operational activities, and the various aspects of corporate sustainability (including climate change). The process follows key regulatory focuses for sustainability and includes the following procedures:
Financial Risk
Interest Rate Fluctuations: The company primarily operates with its own capital, resulting in minimal interest expenses. Consequently, the impact of interest rate fluctuations on the company's overall operations is negligible. The company will continue to monitor domestic and international economic changes and take necessary measures to mitigate the impact of interest rate fluctuations on its financial performance.
Exchange Rate Fluctuations: The company's main operational locations are Taiwan and the United States, with overseas R&D bases in Taiwan and Mainland China. The payment and receipt periods of the company and its subsidiaries are approximately equivalent, offsetting market risks. Therefore, exchange rate fluctuations have a limited impact on the company's business operations. The company continuously gathers and monitors market information, implementing concrete measures to mitigate the risks of exchange rate fluctuations.
Legal Risk
Legal Changes: In addition to ensuring that daily operations comply with relevant domestic and international regulations, the company closely monitors policy developments and legal changes globally to adapt appropriately and minimize the impact of significant policy and legal changes on its financial and business operations. There have been no significant impacts on the company's finances or business due to major policy or legal changes in the past year.
Information Security Risk
Technological Changes: As a company focused on online game operations and game software licensing, the company places great importance on protecting consumer rights. It assigns dedicated departments to handle intellectual property protection, game provision, platform setup, and maintenance to ensure information security and service quality. A 24/7 customer service center is established to provide uninterrupted online services, safeguarding consumer rights. The company remains vigilant about technological changes and industry trends, enhancing information security awareness through training and promoting strict oversight by professional personnel. Regular evaluations are conducted on program and data access, file and equipment security, system recovery plans, and testing procedures to reinforce information security management. There were no confirmed breaches of customer privacy in 2023.
Climate Risk
The ESG Task Force addresses ESG regulations and climate change risks, regularly convening senior department managers to identify significant climate risks and opportunities impacting the company's development planning and resource allocation. In line with TCFD guidelines, climate-related financial disclosures include short-, medium-, and long-term goals and action plans such as the use of renewable energy, replacement of energy-efficient equipment, vendor selection, and information platform development to achieve environmental sustainability.
ESG (Environmental, Social, Governance) Major Issue Risk Assessment
The company conducts risk assessments related to environmental, social, and governance issues in accordance with the "Corporate Social Responsibility Practice Guidelines" to manage economic, environmental, and social risks and impacts. Specific risk management strategies and measures are established for major issues.
Risk Management Strategies and Measures for Major Issues
| Major Issues | Risk Assessment Items | Risk Management Strategies and Measures |
|---|---|---|
| Environment | Environmental Protection Climate Change | The company is a gaming enterprise, primarily operating online services, with no direct environmental pollution. It is committed to global citizenship responsibilities, promoting sustainable development through green procurement, energy-saving equipment, and reducing travel to save energy and reduce carbon emissions. Office equipment is turned off after hours, and energy-saving devices are prioritized to reduce energy consumption. Through high-level management meetings, major climate risks and opportunities are identified. Strategies are set for the use of renewable energy and the replacement of energy-saving equipment to mitigate the impact of climate change on the company, complying with ESG regulatory requirements. |
| Society | Labor Relations | The company complies with the standards of the International Labour Organization (ILO), ensuring fair treatment of employees, providing a healthy and safe working environment, and implementing health and safety education and training to reduce workplace risks. |
| Public Welfare Participation | Implements integrity management, complies with industry standards and codes of conduct, provides relevant training for employees, and strengthens internal audit mechanisms to ensure business operations comply with regulations. | |
| Governance | Integrity and Honesty | Implements integrity management, complies with industry standards and codes of conduct, provides relevant training for employees, and strengthens internal audit mechanisms to ensure business operations comply with regulations. |
| Information Security | A dedicated department is responsible for information security management, regularly evaluating the safety of system and data access, and conducting system recovery plan tests to ensure customer data security. |
Risk Management Operations
The company actively promotes and implements risk management mechanisms. On August 9, 2023, it established the "Risk Management Policy and Procedures," which was approved by the Board of Directors. The Finance and Accounting Department consolidates the implementation status and assessment reports of risk management, regularly submits them to the Audit Committee for review, and reports the results of risk management execution to the Board of Directors. The most recent report to the Board on the operation of risk management was on November 11, 2024.
To foster a top-down risk management culture, the company integrates risk awareness into daily decision-making and operational activities through clear risk management statements and commitments from governance units and senior management, the establishment and support of risk management units, and the provision of professional risk management training for all employees. This approach shapes a comprehensive corporate risk management culture.
| Date | Course | Hour | Audience |
|---|---|---|---|
| 2024/09/27 | Integrity in Business Operations and Risk Management Practices | 1HR | Empolyees |