To ensure the integrity of the risk management system, a complete organizational structure of risk management has been established to implement the checks and balances mechanism of risk management and improve the labor division efficiency of risk management. Effective risk management systems have been established in accordance with the type of risks faced by the businesses of the company. Management methods and risk measurement indicators are clearly set up to ensure the proper implementation of the annual business targets. The Risk Management Office performs daily operational monitoring, prepares the risk control reports regularly, submits the report to the Risk Management Committee every two months, and reports to the board of directors every six months.

The Audit Office has appointed qualified and appropriate number of dedicated internal auditors based on business needs in accordance with relevant laws and regulations, and the Company has set up an auditor general that is appointed by the board of directors to be in charge of supervising the Audit Office and making regular reports to the board of directors and supervisors. The Audit Office reports to the board of directors, and appropriate number of dedicated internal auditors and an auditor general are appointed to assist the board of directors and managers to inspect and evaluate whether the internal control system is effectively working from detached, independent, objective and impartial perspectives. Suggestions are given when appropriate for improvement. The inspection feedback listed by external inspecting units such as the FSC, Central Bank and CPAs were reported to the board of directors as required and tracking will continue until improvement is completely made.
The Company’s Department of Civil Service Ethics conducts the integrity agency risk assessment of the organization, business characteristics, and personnel on a yearly basis. In 2023, 100% of the operating locations completed the integrity risk assessment, and the assessment results in 2023 showed that there was no significant corruption risk. In addition, to implement the self-discipline norms of the personnel using funds of the Company and fulfill the obligation to avoid conflicts of interests, dedicated personnel are assigned to audit the personal transactions of the personnel. In 2023, the audit was carried out 10 times, and a total of 46 people were audited to ensure safety operation of funds, avoid improper trading behavior, and maintain the reputation of the Company. For those managing monetary payment, the procurement personnel and postal staff, the supervisors of the units carry out audits every six months. In 2023 H1, the total number of people being audited was 22,735, and in 2022 H2, the number was 23,168.
The assessment results showed that there was no significant corruption risk. No employees were involved in any cases of corruption in 2023, but there were 5 suspected general illegal cases that were sent to the judicial authorities for investigation, and the relevant employees were held accountable for their administrative liability. In 2023, there were 2 employees whose contracts were terminated due to general illegal behavior during the reporting period.

There were 313 suppliers in 2023, and the ratio of domestic procurement was about 92.48%. The percentage of green procurement meeting the regulations was 99.86%.

To strengthen supplier management, Chunghwa Post introduced the Supplier Self-Assessment Questionnaire on ESG whose content covers 5 major aspects, including environmental protection, labor practices, labor rights, business ethics, and product responsibility. A total of 62 copies of questionnaire were retrieved in 2023, with the pass rate of 100%. Amount them, 56 suppliers were rated excellent, yet the scores in the environmental protection aspect were relatively lower, leaving room for improvement.

To encourage reporting illegal activities for the improvement of the management of the company, Key Points for the Implementation of the Whistleblower System of Chunghwa Post Co., Ltd. (including the whistleblower protection policy) was established in 2021 to provide complete reporting channels internally and externally. The announcement is made on the Whistleblower’s Zone on Chunghwa Post’s official website. Provisions on integrity and reporting channels are also stipulated in the procurement contract and bidding instruction for procurement projects. Channels for whistleblowing include the followings: Mailbox: P.O. Box 610, Taipei Beimen Taipei City, 100900 Taiwan; Reporting line: 02-23969104; Reporting email: whistleblower@mail.post.gov.tw.
In 2023, there were no major violations of laws and regulations, information and labels of products and services, and marketing and communication-related regulations.

To encourage reporting illegal activities for the improvement of the management of the company, Key Points for the Implementation of the Whistleblower System of Chunghwa Post Co., Ltd. (including the whistleblower protection policy) was established in 2021 to provide complete reporting channels internally and externally. The announcement is made on the Whistleblower’s Zone on Chunghwa Post’s official website. Provisions on integrity and reporting channels are also stipulated in the procurement contract and bidding instruction for procurement projects. Channels for whistleblowing include the followings: Mailbox: P.O. Box 610, Taipei Beimen Taipei City, 100900 Taiwan; Reporting line: 02-23969104; Reporting email: whistleblower@mail.post.gov.tw.
In 2023, there were no major violations of laws and regulations, information and labels of products and services, and marketing and communication-related regulations.