The Company is committed to establishing a robust risk management system. In November 2022, the Board approved the "Risk Management Best Practices Guidelines," which categorize risks based on their characteristics. In addition to the Corporate Governance Committee's oversight of risk management, operational risks of a general nature are regularly identified, assessed, and controlled by respective business units. This enhances the efficiency of risk management organization, command, self-assessment,and execution. Annual reports on the previous year's risk assessment and risk management operations are submitted to the Audit  Committee and the Board of Directors. Through the optimization cycle of internal controls and management systems, operational risks are rigorously controlled and effectively reduced, ensuring stable growth in SEEC's operational performance and fulfilling its commitment to sustainable operations.

Operational Continuity Management Policy

Continuously Improving Corporate Culture Flexible and Effective Response to Environmental Challenges Regular Review and Improvement

Risk Management Scope

To ensure the Company's sustainable operation, the Company integrates and manages various strategies, operations, financial aspects, and hazards that may impact operations and profitability in a proactive and cost-effective manner. Through regular group risk assessments, risks are prioritized and categorized, and corresponding risk management strategies are implemented based on their severity.

The Company's sources of risk include Financial Risks, Raw Material Prices and Supply Chain Risks, IT Security Risks, Geopolitical Risks, Occupational Health and Safety Risks, Climate Change Risks, among others.

Risk Management Operations

To implement a robust risk management mechanism,the Company conducts annual group risk assessments.The results of these assessments are regularly reported to the Audit Committee (composed of 3 independent directors) and the Board of Directors (most recently reported on May 9, 2024). These reports include a summary of various risks faced by the Company during the year, along with risk response measures and anticipated improvement methods,ensuring effective operation and execution of risk management within the company.

The Company continues to focus on climate change adaptation and mitigation efforts. In May 2023,the Sustainability Development Department was established to promote environmental protection,social engagement, and corporate governance through an ESG framework. This strengthens the Company's strategies for mitigating the impacts of climate change and adapting to them.

To enhance risk awareness among group employees and integrate risk management concepts into daily operational activities, the company conducted 151 sessions of risk management education and training in 2023, totaling 933 hours. This initiative aims to bolster the Company's frontline capabilities in implementing  risk Management practices effectively.

Contact：Sustainable Development Division ESG@seec.com.tw