Taishin FHC Corporate Social Responsibility Report 2019

28 Sustainable Governance Risk Management Committee Operations of Risk Management Committee 1-3 Risk Management and Internal Control Risk Management System Board of Directors Chairman President Bank's Retail Banking Asset Management Division Asset and Liability Management Committee Monthly risk management meetings Taishin Holdings Subsidiary Companies Chief Risk Officer Chief Risk Office Bank Credit Asset Committee President Bank Credit Approval Committee Taishin FHC has a RiskManagement Committee in place. According to "Organization Rules of Risk Management Committee” Tai shin FHC Risk Management Committee Foundation Principles," the committee shall have at least 3 members, chosen from existing directors with more than half of whom being independent directors. The committee's duties are to review the Risk Management Policy, risk appetite, limit transfer, and the integrated risk management report. Day-to-day risk management is spearheaded by the Chief Risk Officer (CRO) and executed through the CRO Office. The CRO Office communicates with corresponding units of the 3 lines of defense to enforce risk management within the organization. The averaged attendance rate of Risk Management Committee is 100% in 2019. Please refer to the Corporate Governance section for responsibilities of Risk Management Committee P.21 Review of group risk policies and procedures, establishment of risk management system, and review of overall risk analysis report for the financial group Review of subsidiaries' risk policies and execution reports Review and acknowledgment of risk models, risk parameters and indicators, and stress testing, Monitor of risks undertaken by the Company and adopt of necessary control for large exposures Implement risk management strategies and institutional risk management frameworks approved by the board Ensure that the Risk Management Division and risk management functions within each subsidiary implement risk policies properly Assure effective cross-depart - mental communications and coordinate risk management functions Establishment of risk management mechanism and information system Analysis and disclosure of risk management implementation Coordinate and communicate for risk management affairs with subsidiaries Introduce risk management practices by new Basel Capital Accord to establish a risk management framework conformed to international standards. Provide risk management related information Implement the financial holding company’s risk management policy Approve risk management policies and procedures Approve group-wide limits of market risks, credit risks, and operational risks of the financial holding company Securities' Risk Management Division Bank's Risk Management Division Bank'sWholesale Banking Credit Management Division Bank's Retail Banking Finance Credit Management Division