Risk Management Committee
In order to prepare for all the possible operating risks and minimizing potential impacts they may bring, Advantech developed a Business Continuity Plan (BCP) in 2009, and set up the Risk Management Committee to guarantee continuity when risks occur.
Advantech considers corporate risk management as the responsibility of every member in the company. The Risk Management Committee consists of executors and key department directors. The executors take charge of all risk management responsibilities, and department directors will fully push forward risk management policies and process trainings, and actually manage those potential risks within their scope of responsibilities; all employees are requested to learn the risk management strategies of the company, incorporate risk management in their daily work, and report all possible risk factors in time.
We expect to adopt a top-down education and management strategy to incorporate risk management as an essential part of the corporate culture and thus minimize the possibility of risks.
Advantech builds its business continuity plan through risk assessment, potential operating impact, analysis, risk reduction strategy planning, disaster recovery planning and other procedures.
- Risk assessment: Advantech divides key risks into five categories: financial risk, operation risk, technological risk, quality risk and human resource risk, being used to define possible risk resources.
- Operation impact analysis: Using systematic methodology, Advantech clearly defines different levels of potential operating impacts from all risks and works out corresponding measures to address them.
- Risk reduction strategy: Advantech includes risk management into daily operation, and actually implements it at regular intervals. Advantech's risk response strategy includes preventive implementation, adjustment, avoiding passive risk acceptance, and reducing and transferring impacts.
- Disaster recovery plan and testing: Through management division and responsibility of different risk phases, Advantech clearly defines virtual disaster recovery measures for different departments, and utilizes an emergency operating center and disaster communication plan to guarantee operation management when risks occur.