Establishing Risk Management
Risk Management Mechanism
With the post-epidemic era, more variables have been added to the already fast-changing domestic and international business environment, and YOKE has established a risk management mechanism to classify risks into four categories: decision risks, financial risks, operational risks, and hazard risks, etc. The risk identification and prevention mechanism has been developed for each type of risk, and a crisis management mechanism has been established to fully implement risk management operations in order to maintain long-term stable operations.
Audit mechanism
As YOKE is not a publicly listed company, we are not legally required to establish a dedicated audit department or personnel. Nevertheless, out of respect for corporate governance, YOKE has appointed audit personnel directly under the board of directors similarly to what public companies do and established specific internal control mechanisms as guidelines to supplement the Company’s internal management. At the end of each year, the annual audit plan for the following year would be established. The annual audit plan is the framework in which our various monthly audits are implemented and once completed, an audit report has to be verified by the manager of the department being audited to validate the integrity of the report before reporting to the Vice Chairman and General Manager on a monthly basis. Various defects and oversights, along with the recommended actions of improvement, will also be followed up to track the status of rectification for the departments involved. Lastly, audit reports will be included as part of the reporting agenda for the board of directors meeting.
