Sustainable Risk Control
Advanced response with regular tracking.
Risk Alert System
FENC established Risk Alert System in 2015. The administrative units conduct monthly follow-ups and examine corporate risks. In 2022, the Company held 12 risk control meetings, establishing advanced indicators and responses to avert risks, and addressing irregularities in the indicators with corresponding measures, improvements and optimization for prevention.
Starting from 2019, risk indicators are implemented in a systematic approach with a risk management platform. For instance, the Company introduced credit rating and instant credit calculator to address credit risks and crediting management. The system automatically conducts the calculation to determine reasonable credit limits, which enhances the quality of credit decisions.
Implementation of 2023
Administrative units conduct monthly follow-ups to examine corporate risks. Establishing a Risk Control Indicators to address irregularities with corresponding measures, improvements, and optimization. Key tasks in 2023 include:
- Enhancing information security monitoring to prevent internet fraud, along with promoting digital transformation
- Reducing capital costs and improving the financial structure
- Evaluating the impact of the Israel-Palestine Conflict and implementing necessary procedures to ensure accounts receivable
- Planning overall renewals in response to increasing insurance rates in the production business
- Promoting greenhouse gas reduction and verification, evaluating the impact of the International Sustainability Disclosure Standard
Process of Risk Alert System
Coverage Areas of Risk Alert System
|Continuing staff employability; employee benefits and wellbeing; employee turnover and hiring procedure; labor relations; performance review.
|Geopolitics; trade liberalization; corruption; non-tariff barriers.
|Protection of intangible assets (intellectual property); preservation and continuing operation of physical assets; management of financial assets.
|Legal training, anti-fraud and anti-corruption; documentation and information management; regulatory monitoring and compliance; contractual agreement and subsequent management; litigation and dispute resolution.
Finance and Accounting
|Fair presentation of financial reports; compliance and completeness of information disclosure; customer credit and account receivable management; tax audit; financing and capital management; capital expenditure procedure and control; investment management; insurance and hedging.