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 2020, the Company held 12 risk control meetings, establishing advanced indicators and responses to avert risks, and address irregularities in the indicators with corresponding measures, improvements and optimization for prevention.

Starting from 2019, risk indicators are implemented in a systematic approach with 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.

Process of Risk Alert System

Scope of Risk Alert System

Category	Risks
Human Resources	Employability Benefits and health Turnover and recruitment procedure Labor relations Performance review
External Environment	Geopolitics Trade liberalization Corruption Non-tariff trade barriers
Corporate Assets	Intangible asset protection (intellectual property rights) Tangible asset protection and sustainable operation Financial asset management
Legal Affairs	Regulatory training and corruption prevention Filing, records and information management Regulatory updates and compliance Contract agreement and management Litigation and dispute resolution
Finance and Accounting	Fair presentation of financial reports Compliance and totality of information disclosure Management of client vetting and accounts receivable Audit and tax compliance Financing and capital management CapEx procedure and control Investment management Insurance and Hedging