▶️Risk Management
WPG Holdings promotes integrated risk management. Risk management is included in the daily operations by risk management units at each level systematically through risk identification, risk assessment, risk response, and monitoring based on the overall operational model. WPG Holdings is dedicated to balance operational performance and actively expanding various businesses under the premise of effectively controlling risks to enhance overall operating revenue.
Since the establishment of the risk management department in 2017, the formation and implementation of the risk management system have been promoted by WPG Holdings based on the risks identified at each level and relevant Key Risk Indicators, gradually establishing employee awareness of risk management.
To further strengthen employee and organizational risk management awareness and deeply embed risk awareness into the corporate culture, risk management education and training are conducted for all employees each year. Concurrently, fire prevention, emergency response, and personnel safety reporting mechanism drills are also held for major offices and logistics warehouses in various regions.
Organizational Structure of Risk Management
The highest decision-making body for risk management of WPG Holdings is the "Risk Management Steering Team," which is composed of the CEOs of WPI Group and AIT Group, and the CEO of WPG Holdings. Among them, the CEO of WPG Holdings is the convener of the decision-making team and directly reports decisions to the Board of Directors.
The WPG Holdings Risk Management Service Unit regularly compiles the risk management results and reports them to the Audit Committee. The WPG Holdings Risk Management Service Unit compiles the annual risk management performance and reports it to the Board of Directors every year.
Risk Management Process
The initial risk identification was completed by WPG Holdings in 2017, with continuous monitoring and management maintained for existing risks and risk management performance reported monthly to the CEO of WPG Holdings for review. Furthermore, in response to changes in the industrial environment and international situations, the identification and assessment of emerging risks are being performed by WPG.
The risk management process of WPG Holdings includes: risk identification, risk assessment, risk response, monitoring and review, as well as reporting, communication, and consultation. This management framework follows the PDCA (Plan, Do, Check, Act) management spirit, integrating the identification of emerging risks into risk management.
● Risk Identification
Risk identification and assessment are conducted by the Risk Management Service Unit and relevant functional units. Risk response and the planning and execution of subsequent action plans regarding key risks are performed by each corresponding unit, while monitoring, tracking, and reporting are conducted monthly by the Risk Management Service Unit.
● Risk Assessment
To construct a resilient operational system, the establishment of Key Risk Indicators (KRIs) for the enterprise risk management system was initiated by WPG Holdings in 2017, and the mechanism's operation was fully implemented in the following year, establishing key risk items and corresponding threshold values. Through the implementation of a "red and yellow light" tiered management mechanism, routine monitoring is executed by the Risk Management Service Unit to identify potential risk precursors and track root causes in real time. When an indicator triggers a warning interval, corresponding disposal measures are immediately initiated, and reports are regularly submitted to the Risk Management Steering Team of WPG Holdings.
● Risk Monitoring, Response, and Tracking
Following the PDCA management spirit, risk management is continuously optimized, and corporate risk resilience is enhanced.
In the event of an incident with the following characteristics, the discovering personnel or the notified supervisor shall immediately notify the risk management unit without being limited by office hours. If any query arises during the incident reporting process, consultation with the next-higher level supervisor shall be prioritized.
● Identification of Key Risks and Risk Control Measures in 2025
Currently, The Risk Management Service Unit regularly monitors key risk indicators related to warehouse business continuity management (BCM), office BCM, and information security as part of the Company's key risk management framework. A monitoring indicator mechanism has been established, and risk response tracking reports are prepared and submitted on a regular basis to the Convener of the Risk Management Steering Team. The Company's key risks are as follows:
Risk Management Process
With the increase in the number of global emerging risk and occurrence probability, WPG Holdings also identifies and manages emerging risks in the risk management process. WPG Holdings’ assessment of emerging risks in 2025 were mainly focused on “Generative AI Information Security Risks.”
