Delta has adopted a preventive policy for risk management. In addition to setting up a rigorous internal control system and assigning internal auditors to conduct audits at regular and irregular intervals, Delta has also set up committees and crisis management teams to implement risk management. Delta's Board of Directors passed the "Delta Group Risk Policy" in 2020 to specify the units responsible for various risk factors. The units use risk identification, risk assessment, risk control, risk monitoring, and communication management procedures to ascertain the scope of risks and take appropriate measures to ensure the adequate management of related risks. For crises involving several departments or plants, the CEO or personnel designated by the CEO are responsible for directing and coordinating the response.
Delta's risk management is implemented from the perspective of the entire group. We carry out activities such as identification, analysis, evaluation, supervision, and review of potential risks and use qualitative or quantitative management methods to reduce risks in the Group's operations to a manageable level within the risk appetite and risk tolerance. We also use the results as references for formulating business strategies to reasonably ensure the attainment of the Company's strategic goals, protect the Company's core values, and create opportunities. Delta conducts risk appetite assessments of key activities related to the attainment of strategic goals to determine the Company's risk tolerance for key activities, and identifies risks that affect key activities from different aspects. Business units must manage any identified emerging risk, such as geopolitical risks, and and resources to manage such risk is allocated by the senior management. In addition, Delta regularly reviews risk exposure levels every year to assess the impact on the Company.
