At Cathay FHC, the board of directors serves as the ultimate governing body for our risk management framework, responsible for overseeing and approving the Risk Management Policy and the risk management system. Meanwhile, Cathay's Risk Management Committee is responsible for reviewing the Risk Management Policy for each business.
To manage major risks. We regularly report the results of risk management implementation to the Risk Management Committee and the board to comprehensively monitor and manage Cathay's risk exposure. We develop risk assessment indicators for major risk categories and obtain approval from the board. These indicators are regularly assessed and monitored.


Risk Management Measures

We established risk assessment indicators for major risks. All of the indicators were reviewed and approved by the Board of Directors, and are periodically assessed and monitored. Furthermore, we conduct stress tests to assess our capital adequacy given changes in the business environment.

Risk Management Reporting Mechanisms

We established Regulations for Reporting Operational Risk Events, Regulations for Reporting Emergency Credit Risk Events, and Regulations Governing the Handling of Major Incidents to improve our risk management performance, and established corresponding reporting systems. When a risk event occurs, units or subsidiaries shall immediately report it to the Risk Management Division to open a case for management. The units or subsidiaries inspect the progress of risk events and implementation of improvement plans each month, and report progress to the Risk Management Division.

Business Continuity Management

Companies can only increase their operational resilience by strengthening their ability to respond to risks and emergencies in the face of rapid global changes. Cathay FHC and its subsidiaries take the following measures to continuously improve our business continuity management to protect the rights of our customers.

 


The world is facing an increasingly complex financial environment. Technological advances, extreme weather patterns, and demographic changes are also affecting our lives. In response, Cathay has established a Cathay risk map that takes into account recommendations from external experts and risk research reports published by domestic and international institutions.

We first identify risks and then determine mitigating actions. The risk exposure and risk management system are then presented to the Risk Management Committee and the Board of Directors. In 2022, we identified emerging risks in the financial technology, information security, political and economic categories. Cathay FHC evaluates the potential impact the risks may pose on the company's operation and establishes the mitigating actions.

Emerging Risk Identification Procedures and Response Measures

Evaluation of the impact of the top two emerging risks on operations and response measures:


Cathay uses a multi-pronged approach to foster risk awareness and create a risk culture among our employees to implement in our daily operations. Below is an overview of our implementation measures:

 

Feedback

Please let us know your precious opinions.

Contact US

Video

Happiness is how you think of what you have.

More

News Center

For more information, please visit our News Center.

More