Risk Management

In the face of changing circumstances, CTCI has established a complete enterprise risk management (ERM) mechanism to control and reduce the risk of operation and to create a resilient organization, continuously identifying and evaluating various risks that the organization may face. Based on the ERM mechanism, we formulate appropriate risk management strategies to reduce the possibility and negative impact of risks, and promote key behavior indicators under the Company's core values to form a corporate risk culture.

Risk Management Organization

Risk Management Process

Risk Management Training

Emergency Response

The Company has established an emergency risk event control mechanism and has developed alert and action criteria for key risk items of different levels. When an emergency risk event occurs, the responsible unit for the risk event should identify and evaluate the level of the emergency risk event according to the above criteria in order to activate the emergency risk event control mechanism. In addition to developing necessary countermeasures, the responsible units should also follow through on the countermeasure and mitigation results on a weekly basis to reduce adverse influences and impacts. Depending on the severity of the emergency risk event, supervisors should also join the team in the emergency risk event reponse efforts.
　
The Company planned and developed a risk Lessons & Learned (LL) mechanism by the end of 2022. In response to major emergency risk events, the responsible units should submit risk response reports and LL. After the LL content is reviewed and approved, the Risk Control and Management Office will promote the LL content across all relevant units to carry out necessary preventive measures. The Risk Control and Management Office will also review and revise relevant management mechanisms to reflect on the preventive measures derived from LL. The emergency risk events resolved in 2022 have been reviewed and included in the Company's risk bottom line, as well as in key risk items and their alert and action criteria, to ensure continuous improvement of risk management mechanisms and risk prevention. Risk Control and Management Office shall assess and review the group's risk control mechanism based on the content of the risk event LL and promote it to all companies within the group to implement necessary prevention and control measures.
　
Also, in terms of emergency responses, in order to reduce the Company’s operation risks, CTCI has made the "Emergency Response Management Procedure," which covers the first and second headquarters buildings and project construction sites in reponse to major risk events such as Fire, natural disasters, environmental impact events, as well as air conditioning abnormalities, water and power outages, earthquakes, wind disasters, floods, fires, protests, or riots. Through crisis scenario drills, colleagues will be more familiarized with contingency measures to better reduce impact in the event of a disaster. We held a "self-defense group for fire protection" seminar and conduct annual fire evacuation drill for the first and second headquarters buildings in October 2022.

COVID-19 Pandemic Prevention Responses

The rampant COVID-19 virus has spread globally and affected every parts of the world. At the beginning of the outbreak of the pandemic in early 2020, CTCI organized the Group Epidemic Prevention Center and collaborated with relevant departments at the headquarters to develop various standards to strengthen overall epidemic prevention management in aspects such as epidemic prevention information and materials, response measures, operational management, and employee care notifications. We followed through with the implementation in all workplaces of the Group, and held regular global epidemic prevention video conferences and issue epidemic prevention reports to keep up to date with the current pandimic situation across the Group and develop response measures in a rolling manner. We conducted project risk management internally to safeguard the health of all employees as our highest goal. Externally, we built consensus with customers and partners on implementing operational plans for each project to minimize the adverse influence and impact of the epidemic.
　
As the epidemic had been on the rise overseas, some parts of the Group also had several confirmed cases. In April 2021, the Group Headquarters Health Center responsively provide assist in planning remote medical care, building temporary medical rooms, providing guides on the use of oxygen concentrators, promoting bilingual education, and assigning Taiwanese  and foreign doctors to provide medical care. Following the escalation of the epidemic alert throughout Taiwan in May, we also had confirmed cases in the Group. In addition to immediately initiating tracking and care measures for the health of those employees with confirmed cases and close contacts, we also had three hospitals in Taiwan (Taipei Medical University Hospital, Tungs’Taichung Metro Harbor Hospital, and Fangliao General Hospital) jointly complete COVID-19 rapid test for 4,273 colleagues.
　
With the rapid spread of the mutated Omicron strain in various countries, several vaccination reward measures have been launched to encourage our colleagues to get COVID-19 vaccination. In February 2022, in response to the launch of the third dose of vaccination measures by the Central Epidemic Command Center (CECC), a medium-sized vaccination station was built at the Yangde Community Center next to the Group headquarters for local residents and CTCI colleagues. Subsequently, the domestic outbreak of BA4 and BA5 variants became extremely contagious. The Company indentified close contacts based on the nine box grid model and provided rapid test kits for colleagues. The internal epidemic prevention measures of the Group are always in place and adjusted in a rolling manner in coordination with the CECC.
　
In addition, COVID-19 continues to have significant impacts on the Company's projects and those impacts are mainly a significant increase in material prices, a shortage of industrial manpower, a severe shortage of local labor in Taiwan, and serious delays in material and equipment transportation. We immediately reduced the impact of material price increase on our projects by signing pre bid agreements with our manufacturers, and actively negotiating compensation for material transfers, implementing supply chain procurement management, gaining support from external resources for our projects and actively taking measures such as nurturing and recruiting talents, consistently identifying and responding to all risks to reduce the impact of the epidemic on our projects and the Company’s operations.