Risk Management

The Company’s risk management is currently overseen by the Audit Committee. Our risk management policies and procedures at this stage focus on the Business Continuity Management System (BCMS), which was approved by the Board of Directors on December 11, 2020.

In 2020, the Company implemented the BCMS and established the "Business Continuity Policy": Sinyoung is committed to becoming a world-class equipment and service provider. We establish and maintain a business continuity mechanism to effectively respond to threats and safeguard the interests of our customers and stakeholders in the sustainability of Sinyoung’s operations. Sinyoung upholds the commitment of uninterrupted operations, continuously assessing business continuity requirements and conducting regular drills to ensure effectiveness and continuous improvement, thereby strengthening corporate resilience and achieving the goal of sustainable operations.

The above risk management policies and procedures serve as the Company’s highest guiding principles for risk management. To ensure the effective operation of the BCMS, procedures have been established for planning, establishment, implementation, operation, monitoring, review, maintenance, and continuous improvement of the system. In addition, contingency measures and recovery plans have been developed to mitigate the likelihood or severity of operational disruptions. When an interruption occurs, the Company can respond immediately and restore operations to protect the best interests of key stakeholders.

Scope of Risk Management

The Company’s current scope of risk management covers the management of "operational risks." The Company is committed to proactively and cost-effectively integrating and managing all potential risks—both operational and hazardous—that may impact operations and profitability. Through the BCMS, the objective is to provide appropriate risk management for all stakeholders, adopting corresponding risk management strategies based on risk levels.