• Corporate Sustainability
  • Risk management

Risk management

Operational strategy analysis and countermeasures
In consideration of the changes in the global environment and industry every year, Inventec’s governance unit, the Board of Directors, relevant committees and management units in accordance with the seven major management areas including "strategic risk", "operational risk", "financial risk", "product safety risk", "environmental safety risk", “information security risk“, and "litigation and intellectual property risk", carry out major risk identification and risk assessment analysis, formulate timely response strategies, and strengthen contingency mechanisms to effectively reduce risks, improve company competitiveness, and achieve the goal of sustainable operation.

1)Favorable factors Read more

  • Since the functions of notebook computers are continuously improving, and the weight and modeling are becoming thinner and thinner, as well as the collocation of touch control and continuous development of all kinds of digital mobile video multimedia technologies, it has made the product line more extensive through innovation.

  • The cloud computing industry and big data are both growing rapidly. In the future, the cloud application business opportunities are infinite. The Group has been the industry leader in the aspect of server OEM; through existing hardware technology and application software development, we can take our place in the cloud computing industry.

  • Based on the good foundation of an existing all-around product line, in addition to continuing to consolidate the notebook computer and server product fields, Inventec Group is also gradually expanding to relevant fields such as peripheral software products, electronic information products, etc. with higher added value.

  • In addition to strengthening the status of global manufacturing, research and development, and the logistics center, Inventec Group is also actively utilizing production advantages and research and development factors in the Greater China economic circle in order to construct a real time co-working platform with high efficiency and a market feedback mechanism, and together with the setup of a research and development innovation center, we will enhance technology and product design innovation capability.

2)Unfavorable factors Read more

  • In addition to being dedicated to the development of high added value products and all-around products, we also actively improve operation efficiency in such aspects as production, marketing, logistics, etc. to reduce operation costs and improve overall operation efficiency through constructing Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and six sigma improvement strategy.

  • Inventec Group will formulate a relevant operation risk management mechanism to consider various operation strategies as relevant solutions; in addition to coordinating with customers for the research and development of relevant demanded commodities, we are also dedicated to patent and intellectual property innovation in order to strengthen Group resource integration and expand emerging business investments and arrangements to respond to changes in the market.

  • Inventec has long-term cooperative and strategic ally relationships with major suppliers and has established multiple supply sources for important components to ensure sufficient component supply; we also seek all kinds of approaches to integrate the supply chain and reduce the impact.

  • Most of the important components of Inventec are purchased and imported overseas and priced with foreign currency, and the sales are mostly priced with foreign currency, which can naturally offset the impact of change of exchange rate on revenue and cost. Furthermore, taking currency hedging measures can help us reasonably avoid exchange rate risk.

Risk management and countermeasures Read more

In order to fully promote the construction of an intelligent factory, we are developing and implementing a detailed strategy and development plan from four aspects: 4.0 (industry 4.0), TPS (Toyota production model), LSS (lean six standard deviation), and Automation (Automation).

In terms of physical construction, the AI research center, industry 4.0 technology center, and 5G telecommunication technology center were successively established in 2018. The intangible, in-depth research is performed over the five core technologies vital for future product and market development: A (AI), B (Blockchain), C (Cloud Computing), D (Big Data), and 5 (5G).

Inventec’s relevant units have always strictly followed important policies at home and abroad, as well as law changes, and pay close attention to any changes at all times. They also actively coordinate and adjust company financial business activities in response to such changed matters. With regard to the promotion of corporate governance by competent authorities, successive issuing and amendment of the Company Act, Securities Exchange Act, and handling criterion for all kinds of businesses, the reformation of the tax regulations environment, etc., Inventec actively coordinates to handle such matters as required.

In recent years, white label servers have begun to enter the cloud market of traditional server factories. In addition to data centers established in various regions, the company has also expanded its territory to Southeast Asia. With their own manufacturing and quality advantages, Taiwan OEM companies pay more attention to software and hardware integration solutions and thus win the favor of international manufacturers. Inventec seeks diversification on both the customer side and the supply side and prevents sales from becoming too concentrated.

Interest rate: Inventec carefully evaluates the risk of interest rate changes in operating its funds and makes the best use of its capital portfolio after considering both liquidity and security.

Exchange rate: Since Inventec is deeply rooted in the international market, its main exchange rate policy is to naturally avoid risks after debt and creditors' rights are offset, as well as to reduce the exchange rate risk through currency hedging.

Inflation: Inventec  continues to actively observe market conditions and effectively control costs and operating expenses to mitigate the impact of currency inflation on operations and prevent the phenomenon of false profits and real losses.

Inventec established information safety organization.   The information safety response team has been established under the auspices of the general manager to strengthen the management of information safety.  In accordance with the "Information Safety Management Regulations", Inventec meets customers’ expectations of Inventec’s information safety, ensures the confidentiality, integrity, and availability of the enterprise system and network transmissions, and prevents illegal use.  Inventec reviews production line information safety.  Every year, Inventec shall undergo and information safety audit of customers by an external third party, in addition to an internal self-audit, and review information safety matters according to ISO 27001 and other information safety and control regulations.  Inventec improves, strengthens, and establishes preventive measures to create a production environment that both shareholders and customers can trust.