Risk Management
In today's rapidly changing era of technology and information, JIH LIN understands the importance of maintaining and enhancing the overall interests of the company. In order to ensure operational effectiveness and efficiency, the reliability of financial statements, the company comply with relevant laws and regulations, and assist the board of directors and management in fulfilling their responsibilities for achieving other goals. The company continually reviews its risk management processes and stay focused on developments in domestic and international trends and the global environment for enhancing the effectiveness of risk management practices.
Each risk is assessed based on professional expertise, taking into consideration its relevance to the objectives. We conduct risk identification and formulate management strategies and countermeasures to mitigate, transfer, or avoid risks effectively, ultimately reducing operational risks for the company.
Framework of JIH LIN Risk Management:
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The main business of JIH LIN is the manufacture and sale of semiconductor Lead Frames. It does not engage in high-risk or high-leveraged investments. In terms of the aforementioned risk management, appropriate policies, procedures, and internal controls have been established in accordance with relevant regulations. The important activities must be implemented by the board of directors in accordance with relevant regulations.
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Risk Management Scope |
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Category |
Possible Risk |
Countermeasures |
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Financial Risk |
Foreign Exchange Risk |
●Monitoring foreign exchange market trends to enhance capital utilization efficiency. |
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Interest Rate Increasing |
●To constantly monitor interest rate fluctuations and take appropriate measures to mitigate the impact of interest rate changes on the company's profit. |
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Inflation Risk |
●To have a natural hedge effect that income and expenses offset each other. |
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Production Risk |
R&D Technology |
●Investing in research and development, acquiring high-precision machinery and equipment, optimizing production processes, and improving production efficiency to ensure the competitive advantage. |
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Raw Material Risk |
Supply Chain Disruption |
●Making supply contracts with relevant suppliers ensure a steady supply of materials. ●Purchasing raw materials from various suppliers mitigate the material shortages risk and concentration risks. |
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Information System Risk |
Information System Risks |
●Strengthening cybersecurity, monitoring, reporting mechanisms, unusual management, and backup. ●Standardizing operational procedures. |
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Market Risk |
Market Concentration |
●To reduce the proportion of sales to a single customer, avoiding sales concentration risks. |
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Other Risk |
Earthquakes and other natural disasters, as well as fires or chemical spills |
●To establish emergency response measures for natural disasters such as earthquakes and regularly conduct earthquake and distaste drills. ●To gather disaster information quickly, establish preventive measures, keep track of personnel movements, and organize response teams for disaster relief. ●To Strengthen coordination capabilities with customers or suppliers regarding delivery schedules. |
