The "Guidelines for Risk Assessment" has been developed, followed by the identification, analysis, assessment and handling of every short-, medium- and long-term risks. First, we identify the risk factors and assess potential losses, followed by the selection of management methods and the implementation of regular and irregular monitoring, auditing, and tracking of risk management.

• Risk Management Promotion Committee

          The “TSC Risk Management Promotion Committee” was established to be responsible for the assessment of various risks, the development of preventive measures, the internal control system and the implementation of related businesses. The chairman of the Company serves as the steering committee member, the president as the committee chairman and the vice president of Business Supervision, Department of Planning as the committee vice chairman. The vice presidents and the first-level supervisors of all divisions (excluding the Internal Audit, BOD) and all unit are committee members. An annual risk management meeting is held, and the risk management situation of the previous year, the major risk items of each unit of the year, as well as the precautions are reported and discussed in the meeting.

• TSC set functional committees under the board of directors

          Three Functional Committees established under the board of directors include the Audit Committee, the Land Resources Committee, and the Business Investment Committee. Among the three committees, one of the major purposes of the Audit Committee is to “Control the existing or potential risks of the company” as stipulated in Article 3 of the Audit Committee Charter.

• The Internal Audit is subordinate to the BOD

          TSC has set the Internal Audit, BOD, an unit independently exercising its power to conduct internal audit operations for the evaluation and review the deficiencies of the internal control system, the compliance with relevant laws and regulations, and the evaluation of the effectiveness and efficiency of operations, and suggestions for improvement are also provided in a timely manner. At the beginning of each year, the Internal Audit sets annual internal audit plan in accordance with the risk level and schedules regular or irregular on-site inspections to examine the handling situations. Items to be improved are listed for management and tracking, and guidance and counselling will be given. The operating risk of the company is reduced to the minimum by means of tactical and institutionalized practices.

          The audit report of each unit audited by the Internal Audit, BOD is provided to all independent directors for review. In addition, the audit report is also submitted to the board of directors every month, and the annual summary of audited items of each unit should also be reported to independent directors and the Audit Committee.