• 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. With the continuous development of new technologies, the laptop product line has been expanded 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, the 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, the 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

  • Solution:The 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.

  • Solution: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.

  • Solution:The Company 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.

  • Solution: Most of the important components of the Company 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

Innovative change: Continuous innovation and R&D, grasp the market pulse and understand customer needs.
Technology and industry changes: Actively promote the establishment of smart factories, carry out product innovation and value-added enhancement, implement diversified operations and integrate with the Internet and 5G technology to improve overall operating efficiency.
Corporate culture: Adhere to the consistent business philosophy and corporate culture and grasp the overall risk of the company.

Centralized goods purchase and sales: In response to the China-US trade war, the production strategy is adjusted in advance, and diversification in supply and demand will effectively prevent excessive concentration of purchases and sales. Continue to conduct vertical integration and strategic alliances to seek new opportunities to respond to market changes.
Expected benefits of plant expansion: In response to the China-US trade war, overseas capacity expansion was carried out in advance, which greatly reduced the supply chain crisis. According to the economic environment and market demand, the plant expansion plan was carefully evaluated to reduce the risk of idle assets and capital exposure through asset activation.

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: The 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 will continue to actively observe market conditions and effectively control costs and operating expenses to mitigate the impact of currency inflation on operations.
Investment and Finance: Regarding lending funds to other parties and derivatives related transactions, such is actually handled according to the execution policy. The demand of investment that might occur due to the growth of operations will be met through financial risk management analysis, allocation of integrated financial resources, and consideration of the costs of investments to ensure smooth operation.

Legal changes: Keep abreast of changes in company-related laws, policies, and litigation practices; implement U.S. export control laws, anti-bribery, product defects and security, free software and other compliance projects; hold law and intellectual property lectures and new personnel education and training to implement risk control and protect intellectual property.
Litigation events: Keep abreast of major litigation events and related countermeasures of the group company.
Intellectual property rights: Attach importance to intellectual property rights and spare no effort to protect product patent rights to defend independent research and development of intellectual property.

Product and service policy: A comprehensive customer relationship management service mechanism, from order reception to product and client status, and actively concern about all the reflected information of the customer; in addition, through periodic customer business review meetings to meet customer concerns Issues. Provides real-time service and reply mechanism through OEM/ODM client station service mechanism. Assist customers to obtain product environmental certification every year to provide more environmentally friendly products and services to customers worldwide.
Supplier evaluation management: In addition to the quality, cost, delivery, technology and service of the supplier’s multiple evaluations, the scope of evaluation extends to green products and corporate social responsibility. The evaluation scope corresponds to The company's requirements for suppliers include the establishment of management systems such as ISO 9001, ISO 14001, OHSAS 18001, and RBA. Through multi-faceted evaluation and evaluation, ensure that the suppliers can specifically respond to important supply chain issues, such as product environmental design, process environmental conditions and operation requirements, restriction of hazardous substances, banned child labor, protection of employees' rights and interests, workplace safety, etc. Through supplier RBA audit, ensure that the supplier does not violate the above situation. Carry out on-site audits for suppliers with medium and high risks from existing suppliers every year and request improvement; the contract content clearly stipulates that the laws and regulations follow the terms, and if there are violations of relevant important laws and regulations and have a significant impact on the environment and society, this clause can be terminated or cancel the contract.

Environmental protection expenditure: Mainly includes waste treatment, pollution prevention equipment maintenance, environmental testing, ecological greening, green management system verification, product environmental certification, environmental education, energy saving and carbon reduction projects, environmental conservation activities, occupational health, green supply Chain management and carbon emissions trading.
Promote the green supply chain: Through various assistance and integration with suppliers and holding a sustainable supply chain briefing session, hope to contribute to the sustainable development of the supply chain.
Dedicated unit for the safety, health and environment: Industrial Safety and Health Office is responsible for planning the various management operations of the safety, health, and environment, supervising the relevant departments to implement various safety, health, environment affairs, setting up the occupational safety and health committee according to law, and formulating the "occupational safety and health policy", focusing on occupational safety and health-related matters, actively promote occupational safety and health education, prevent occupational disasters, promote a healthy workplace, and promote the health of employees.
Safety, Health, and Environmental Management Certification: Obtained "TOSHMS Taiwan Occupational Safety and Health Management System" and other certifications for various safety, health, and environment management systems, and has also won various awards from the government.
Climate change risks and opportunities: Follow the TCFD climate change governance framework for mitigation and adaptation practices, define risk assessment and identification procedures based on the climate action method, master policies and regulations, technologies, markets, goodwill and extreme climate risk elements, and evaluate the niche of potential opportunities, find opportunities for new energy, markets, products/services, resource efficiency, etc., and develop new businesses and services, etc., to be integrated into the company's operating process.

Establishment of information security organization: The general manager chaired the establishment of the security response team, and the production line information security response team under the business group (EBG) under its jurisdiction to implement and strengthen information security management. Conduct information security project audits, supervise the information security management system (ISMS) risk assessment planning and information security system implementation, and report the audit results to the Board of Directors.
Implementation of information security management: In accordance with the “Information Security Protection Management Measures”, Inventec’s information security management will be implemented, and employees will continue to conduct security education and training to actively manage risk and weaknesses.
Strengthen the company’s employee information security awareness: The company’s colleagues sign the “Employee Code of Conduct” each year to include information security protection matters, and timely release information security announcements to remind colleagues of information security risks.
Anti-virus hacker monitoring: monitor the situation of virus detection in various factories around the world and carry out necessary protective measures and virus killing management. Report virus attack and security information to the general manager every month, such as popular information security incidents, information security response and prevention-related practices.
International Security Certification: Obtained ISO 27001 international information security certification.
Information security inspection: Every year, we accept information security audits from customers, internal self-inspections and external third parties, and perform inspections with reference to ISO 27001 and other information security structures and control items.
Strengthen security protection:
a. Equipment replacement operations are upgraded to enhance system availability and safety. 

b. Upgrade the next-generation firewall, establish a double-layer defense structure, and enhance the depth of security protection.

c. Import the fortress springboard machine to reduce the risk of penetration and enhance the monitoring of the host connection.

d. Promote two-factor authentication to avoid the risk of account theft or cracking.

e. Strengthen the protection of APT attacks and introduce an advanced persistent threat APT protection solution to avoid malicious programs and hacker attacks and protect information security.