Sustainable Risk Control

FENC establishes advanced indicators and responses to avert risks and addresses irregularities in the indicators with corresponding measures, improvements, and optimization for prevention.

FENC established Risk Alert System in 2015. The administrative units conduct monthly follow-ups and examine corporate risks. In 2025, 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.

Administrative units conduct monthly follow-ups to examine corporate risks. Establishing Risk Control Indicators to address irregularities with corresponding measures, improvements, and optimization. Key tasks in 2025 include:

Monitoring U.S. reciprocal tariffs and implementing response measures.
Continuously promoting revenue enhancement and cost reduction to improve the financial structure.
Establishing plans to enhance corporate value and facilitating dialogue with investors .
Enhancing information security management and constructing an AI cybersecurity war room.
Establishing a regular software inventory mechanism to strengthen intellectual property management.

Digital Transformation in Credit Management and Investigation

2023	Established the Global Overdue Information Platform with optimization underway for the Global Credit Management Platform and Credit Customer Information Management Platform.
2024	Completed the National Intelligence Sharing Platform, which minimizes geopolitical risks by pairing real-time risk monitoring with appropriate risk control measures based on the Directions for National Risk and Crisis Monitoring, Management and Handling.
2025	Created an automated early warning and notification system, which sends alert when material information is released by listed companies in Taiwan or when the risk indicators are marked red, enabling real-time monitoring of material customer events and potential credit risks, hence improving the efficiency of risk identification and response. Incorporated an AI module platform to generate credit reports regarding domestic and international customers, which improves the efficiency and quality of the analysis while strengthening credit decisions and management.

2023

Established the Global Overdue Information Platform with optimization underway for the Global Credit Management Platform and Credit Customer Information Management Platform.

2024

Completed the National Intelligence Sharing Platform, which minimizes geopolitical risks by pairing real-time risk monitoring with appropriate risk control measures based on the Directions for National Risk and Crisis Monitoring, Management and Handling.

2025

Created an automated early warning and notification system, which sends alert when material information is released by listed companies in Taiwan or when the risk indicators are marked red, enabling real-time monitoring of material customer events and potential credit risks, hence improving the efficiency of risk identification and response.

Incorporated an AI module platform to generate credit reports regarding domestic and international customers, which improves the efficiency and quality of the analysis while strengthening credit decisions and management.

Process of Risk Alert System

Coverage Areas of Risk Alert System

Risk Category	Detail	Measure
Human Resources	Continuing staff employability; employee benefits and wellbeing; employee turnover and hiring procedure; labor relations; performance review.	Conduct salary surveys for appropriate salary adjustments. Establish communication channels between the labor union and employer to assess employee needs. Include written exams and interviews during recruitment and implement a probation system.
External Environment	Geopolitics; trade liberalization; corruption; non-tariff barriers.	Calculate dumping margins quarterly and review the sales structure. Establish the code of conduct for antitrust compliance. Create the National Intelligence Sharing Platform to focus on the geopolitical risks in global regions.
Corporate Assets	Maintenance of Intangible Assets (Intellectual Property Rights); Preservation of Physical Assets and Business Continuity; Financial Asset Management.	Monitor fluctuations in housing prices and the progress of land development monthly. Set safety stock levels for products with monthly review.
Legal Affairs	Legal training, anti-fraud and anti-corruption; documentation and information management; regulatory monitoring and compliance; contractual agreement and subsequent management; litigation and dispute resolution.	Complete the online self-evaluation for regulatory compliance monthly at all units. Announce regulatory changes periodically and notify applicable units.
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.	Establish the Global Customer Credit Management Platform and Credit Customer Information Management Platform to review real-time credit conditions. Review the ratio of financing sources and examine the performance of individual reinvestment on a quarterly basis, and provide improvement recommendations when appropriate.
Information Security	Internal information security, supply chain information security, digital vulnerability management	Establish robust defense systems and operating procedures for reporting information security incidents. Provide 24-hour information security monitoring through an outsourced security operations center. Monitor press coverage and precautions from experts on information security incidents.