In order to maintain a stable operation, Eurocharm Group has a dedicated unit responsible for quality, environment, occupational safety and health, and information management and auditing. In addition, the audit office is responsible for risk management, and the main audit items are included in the annual audit plan, and the internal control system is checked and the audit results are disclosed in the audit report.

RiskCountermeasures
Interest RateThe changes in interest rate has no significant effect on the business operation as the Company’s 2021 annual interest income and interest expense have minimal influences on the pre-tax net profit.
Foreign Exchange RatesThe changes in foreign exchange rate has no significant effect on the business operation as the Company’s 2021 foreign exchange gain is accounted for 0.40% of the consolidated revenue. In addition, the Company monitors the exchange rate movement closely to minimize the risk of an exchange rate.
InflationIn recent years, the high demand for raw materials from emerging countries has inflated the global markets significantly. In order to reduce the inflation risk and lower the production cost, the Company will be actively seeking methods to improve processing and adjusting product pricing accordingly.
Capacity ExpansionThe company regularly conducts long-term market demand forecasts for its products and services in order to make overall plans for production capacity. Because the demand forecast will change significantly in the market environment at any time, when the demand decreases, the company will temporarily reduce the operation of some production lines or machines and idle capacity will be generated. In response to the above possible risks, the company will continue to observe market changes and work closely with customers. If market demand is not as expected, the company will adjust its production capacity plan in a timely manner to reduce the negative impact on the company’s financial performance.
Information Technology SecurityThe company has established an information technology security policy to establish and maintain a secure environment for company information and computer systems. However, even if the company has established the above policies, procedures, and many other information security protection measures, it can’t guarantee that its computer system that controls or maintains the company’s important corporate functions such as manufacturing operations and accounting can completely avoid attacks from any third-party paralyzed systems. These cyber-attacks illegally invade the company’s internal (external) network systems, disrupt the company’s operations and damage the company’s goodwill and other activities. In the event of a severe cyber-attack, the company’s system may lose important company data. Therefore, the company will continue to review and evaluate its cyber security regulations and procedures to ensure their appropriateness and effectiveness, but it can’t guarantee that the company will not be affected by innovative risks and attacks in the ever-changing cyber security threats.