Solutions
About Us
ESG Corporate Sustainability
Investors
Contact Us
Careers
Affiliated company
×

Corporate Governance

Risk Management

JPC follows its overall operational strategy to identify and define various risks, while continuously monitoring key domestic and international issues and changes in the external environment. The company actively promotes risk prevention and loss control measures; regularly reviews and strengthens organizational resilience to reduce and avoid potential risks in operations. This is achieved through internal training, transparent information disclosure, and the implementation of early warning and reporting mechanisms.

Risk management level
Risk Management Levels
Third Line of Defense

An independent internal audit unit objectively inspects and supervises the effectiveness of compliance processes in the first and second lines of defense, implements internal controls, and systematically strengthens risk management. Reports are submitted to company management and periodically presented to the Sustainability Development Committee and the Board of Directors.

Second Line of Defense

Responsible for corporate risk management and regulatory compliance. Overseen by senior executives at the highest level, this line assists in supervising the risk management operations of the first line of defense, ensuring proper implementation and compliance with systems and regulations.

First Line of Defense

Focused on corporate operations, with business and production units playing the main role in operational control and risk identification.

Risk Management Process and Implementation

Risk Identification and Assessment

Identify and evaluate the impact of risks on various business and operational activities, taking into account the nature, scale, and complexity of operations. Risks are regularly reviewed, managed, and corresponding response measures are implemented.

Risk Response and Monitoring

Adopt appropriate countermeasures for identified risks, including avoidance, transfer, and mitigation. Measures are taken accordingly, and risks along with response approaches are reported to senior management.

Risk Reporting and Disclosure

Report the status of risk governance to the Sustainability Development Committee and the Board of Directors.

2025 Risk Management Operations

The Company periodically reports on risk management operations and sustainability supervision to the Board of Directors, with the latest report dated December 26, 2025.
Respective units develop and execute risk response and follow-up action plans for major risk factors.

Risk Item

Macroeconomic Market Risk

Risk Factors
  • Order fluctuation risk
  • Customer credit risk
  • Inflation and rising cost risk
  • Geopolitical and market competition risk
  • Supply chain risk
Responsible Unit

Global Sales Center &
R&D Center &
Global Manufacturing Strategic Sourcing

2025 Implementation
  • Bad debt in South China region has been referred to the legal department for litigation.
  • Continued implementation of prepayment policies for customers in high-risk areas.
  • Promoted digital aging management for real-time monitoring.
  • Negotiate cost adjustment margins with suppliers at the beginning of each month.
  • In response to U.S. export controls or tariff adjustments, integrated secondary suppliers (2nd source) to reduce single-source risk.
  • Conducted supplier evaluations and required signing of the "Social Responsibility and Code of Conduct Commitment" to ensure compliance with ethics, environment, and safety standards.
Risk Item

Product Quality Risk

Risk Factors
  • Supplier quality stability
  • Risk of knowledge gap in quality expertise and experience
  • Hazardous substance identification and compliance
Responsible Unit

Global Manufacturing Center
Quality Assurance (QA)

2025 Implementation
  • September 2025: Launched supplier classification management system with Procurement; conducted quality audits for key suppliers.
  • September 2025: Established AI Quality Intelligence Database to search for similar quality cases and promote documentation of quality knowledge.
  • July 2025: Regularly updated international and client-side hazardous substance regulations and ensured supplier compliance from raw materials to finished products.
Risk Item

Forex & Interest Rate Risk

Risk Factors
  • Monetary policies / Geopolitical risks
Responsible Unit

Management Center
Finance & Accounting

2025 Implementation
  • Promoted USD as the core quoting currency for subsidiaries to achieve natural hedging.
  • Formulated forex risk strategies and stop-loss standards to prevent losses from expanding.
Risk Item

Cybersecurity Risk

Risk Factors
  • Lack of employee awareness / Information policy implementation gap
  • Leakage of critical data
  • Cyber attacks
Responsible Unit

Management Center
IT Management

2025 Implementation
  • Cybersecurity training 1+ times/year; phishing drills semi-annually.
  • Annual vulnerability scanning, patching, and firewall policy protection.
  • Obtained ISO 27001 Information Security Management System certification.
  • Joined TWCERT/CC to leverage joint defense resources and enhance risk management.
Risk Item

Environmental Risk

Risk Factors
  • Global net-zero policies / Climate change
  • Changes in environmental regulations
Responsible Unit

Global Manufacturing Center

2025 Implementation
  • Completed ISO 14001 certification and environmental testing for mainland China plants.
  • Activated carbon replaced in environmental protection facilities.
  • Published the first Sustainability Report in 2025, using the TCFD framework for climate disclosure and carbon reduction targets.
  • Integrated "Zero Industrial Injuries" into environmental and safety management; maintained zero major occupational injuries in 2025.
Risk Item

Human Resources Risk

Risk Factors
  • Global expansion and organizational adjustment
  • Talent retention risk amid industry competition
Responsible Unit

Management Center
HR & Admin

2025 Implementation
  • Multi-channel Recruitment:
    1. Campus recruitment (6 summer interns) + industry-academia collaboration (3 projects), with a 40% full-time conversion rate.
    2. LinkedIn and digital recruitment integration, increasing key talent reach by 3x.
    3. Digitalized Hiring: Online assessments and AI interviews increased efficiency by 95% → work hours reduced by 30%, accuracy at 98%.
  • Employer Branding: Collaborated with 2 university racing teams, sponsoring technology and professional products.
  • Development & Learning: Created a "Hard Skills + Soft Skills" learning map:
    1. E-Learning map: 16 sessions, avg. 10+ hours/person.
    2. 84% satisfaction rate in surveys; introduced 12 wellness courses.
    3. Group insurance/On-site health services coverage doubled by ▲50%.
    4. Check-up satisfaction at 81.16%, with costs reduced by ▼62%.
  • Market Benchmarking: Annual review of salary ranges and bonuses for key positions.
  • Succession & Deputy Mechanism: Promoted a deputy system for key positions to ensure knowledge transfer and organizational stability.
  • Integrated "Zero Industrial Injuries" into HR risk management; maintained zero major occupational injuries in 2025.
mail to JPC
go top