Flytech remains vigilant towards various potential risks, both internal and external, that may impact our operations. We establish appropriate management measures and response preparations to effectively mitigate these risks, ensuring the sustainability of our key operational activities and providing assurance to all stakeholders.
To maintain operational continuity, our board of directors approved the Risk Management Policies and Operations Measures in January 2021, with the latest revision conducted in January 2023. This revision was informed by the Risk Management of Listed OTC Companies guidelines issued by the stock exchange in August 2022. The updated revisions include various provisions such as the purpose, risk management principles, objectives, governance, organizational structure, responsibilities, procedures, and reporting and disclosure practices.
Risk Management Policy
Flytech’s board of directors and each operating unit are tasked with identifying and analyzing risk categories while establishing acceptable risk thresholds that align with legal requirements and the company's overarching operating objectives. It is their responsibility to develop and implement risk management measures, overseeing their execution to ensure continuous business operations and mitigate potential losses, thus furthering the goal of sustainable operation.
Risk Management Organizational Structure
Flytech’s board of directors serves as the highest governance unit for risk management, with oversight responsibilities entrusted to the audit committee. Given the company's scale, business characteristics, and the nature of risks inherent in its operations, there is no separate risk management committee. Instead, the President and the top supervisor of each operation center assume roles as the Management Unit of Risk Management, directly accountable to the board of directors.
The Execution Unit of Risk Management comprises the permanent risk management unit and the risk management project team, which supplants the functions of the risk management committee. This unit is tasked with planning, executing, and supervising risk management-related activities. The audit unit provides oversight of the execution units and projects, performing tasks and assisting in rectifying any abnormalities.
Ultimately, the audit committee oversees these efforts, and the board of directors bears ultimate responsibility for governance.
