In further investing in sustainable operations, Fubon Life focuses on four primary aspects: board governance, ethical management, regulatory compliance, and risk management. Measures implemented to ensure corporate governance and enhance sustainable value include establishing dedicated units to enhance regulations and employee training, strengthening the functions of the Board of Directors and independent directors, conducting regular evaluations, and avoiding conflicts of interest. "Integrity" is fundamental to corporate governance and sustainable operation, and the Company adheres to the principles of integrity, transparency, and accountability, fostering a corporate culture of ethical management and sound development. Additionally, units dedicated to regulatory compliance are in place, consistently improving compliance efforts to reduce the risk of legal violations. A well-functioning risk management organization was also established to foster a risk management culture, develop effective risk management systems, and ensure the best interests of customers and shareholders while maximizing risk management effectiveness.
The Board of Directors is the highest governing body of Fubon Life and currently consists of nine members. The Board of Directors convenes meetings at least once per quarter. Fubon Life's Board of Directors and its functional committees oversee and promote various governance initiatives. Performance evaluations are also carried out for functional committees, including the Sustainable Development Committee, Audit Committee, Risk Management Committee, and their respective members. The findings are also submitted to the Board to ensure comprehensive oversight and operational effectiveness.
Fubon Life's Corporate Governance Guidelines stipulate that the composition of the Board of Directors should be diversified, taking into account its operations, business models, and development needs to formulate appropriate policies and specific management goals. Furthermore, to highlight the alignment with sustainability priorities and the implementation of TCF principles, the Company has included the Board's commitment and concrete actions towards sustainable development, ethical management and adherence to TCF principles as an indicator in the evaluation.
In the fourth quarter of 2024, the Company engaged the Taiwan Corporate Governance Association to conduct an external evaluation of the Board's performance.
Risk Management Organizational Structure
In accordance with Fubon Life Risk Management Policy, the Company adopts a three-line defense system based on international best practices to establish a risk management framework covering risk appetite and limits, risk management mechanisms and documentation. The objective is to identify, measure, monitor, and report on potential risks using both quantitative and qualitative risk control techniques, taking into account the nature, scale, and complexity of the Company's businesses, and to effectively implement Enterprise Risk Management (ERM).
Risk Management of Unethical Behaviors
In line with our commitment to ethical management, the Company has established a mechanism for unethical behavior assessment in 2023, which has been integrated into our operational risk management system. Fubon Life Dishonest Behavior Risk Assessment Regulations were also established to regularly evaluate the risk of unethical behavior in our business operations and review the adequacy and effectiveness of risk management measures in ethical management. The internal audit unit develops relevant audit plans based on unethical behavior risk assessment and conducts audits to verify compliance with preventive measures. Audit results are reported to senior management and the dedicated unit responsible for ethical management and compiled into an audit report submitted to the Board of Directors.