Risk and Crisis Management
Risk Management Mechanism
Brogent has set up an Audit Office directly under the Board of Directors responsible for internal audit affairs and handling related matters. The Audit Office has 1 audit supervisor and 1 auditor. The Audit Office is responsible for reviewing and assessing different types of risks and formulates risk assessment regulations and management measures.
The Company formulates an audit plan based on the risk assessment results, assists the Board of Directors and managers in performing routine and special audits, evaluates deficiencies in the internal control system, tracks improvements, and regularly reports audit results to the Board of Directors, thereby ensuring operational performance and efficiency (including profitability, performance, and ensuring asset safety) and that the design and implementation of the internal control system remain effective.
Structure of the Risk Management Organization
Risk Management
Based on the Company's business characteristics, main risks are divided into the following categories: management risks, environmental safety risks, technology and information security risks, financial risks, and strategic and operational risks. Each unit establishes necessary management procedures based on its responsibilities, and regularly adjusts its risk management mechanisms based on changes in the internal and external operating environment. Units prepare reliable, timely, and transparent risk reports in coordination with the Company's Risk Management Policy, and implement risk prevention to comply with laws and regulations of the competent authority and meet the expectations of stakeholders.
Internal Audit
The purpose of internal audits is to assist the Board of Directors and managers with inspecting and reviewing deficiencies of the internal control system, and measuring the effectiveness and efficiency of operations, so that relevant systems will be revised in response to changes in the environment and strategies, and timely suggestions are provided for improvement. This will ensure that the internal control system continues to be effectively implemented, and serves as the basis for reviewing and revising the internal control system. We also conduct internal audits on regular and irregular operations, financial and non-financial aspects, and regulatory compliance to avoid business conduct that does not comply with the principles of ethical corporate management, and thereby reduce operational risks.
Internal Control
Brogent's internal control system was designed by managers, takes into account the Company's overall business activities, was established in accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies" and approved by the Board of Directors, and the management process is carried out by the Board of Directors, managers, and other employees. The purpose is to promote sound operations of the Company, reasonably ensure the achievement of goals such as operational results and efficiency; reliable, timely and transparent report, and compliance with relevant laws and regulations.
The Company's internal control system covers all business activities, including the control environment, risk assessment, control operations, information and communication, and supervision. It determines types of business cycles according to industry regulations and characteristics, and stipulates the design and implementation of control operations.
Risk Analysis
Each functional department of Brogent is responsible for identifying and managing all potential risks that may affect company operations, and carrying out risk analysis and assessment. Brogent effectively mitigates the impact of risk events by analyzing the probability of occurrence and the degree of negative impact once such events occur. At the same time, it also serves as reference for subsequent determination of risk management priorities and selection of response measures, so that response strategies can be formulated in advance to reduce the impact on the Company's sustainability.
The impact of the pandemic has passed in 2023, and the amusement ride market has shown a clear growth trend. Brogent has begun to prepare stock of commercially available parts to be able to respond to market demand. In terms of manufacturing, we have begun to find new manufacturers in Taiwan and overseas who meet quality requirements, ensuring multiple sources to respond to potential bottlenecks in the production line.
