Material Issues

(3) Risk Identification and Management

Material Issue Risk Identification and Management
GRI Material Topic Economic performance
GRI Management Approach (Related Chapter) Sustainable Governance
Risk Involved Investing and Lending are a financial institution’s main businesses. If clients do not have mature ESG risk management systems or have high ESG risk profiles, they could directly affect the Company’s performance. Climate change and its impact on the economy and businesses can also adversely affect the Company’s sustainable development. As global regulatory requirements turn stricter, information security, human rights, and emerging risk management are also key to the Company’s operations because of the potential for those issues to trigger a reputation crisis.
Responsive Actions Fubon Financial Holdings has established a comprehensive risk management system with detailed policies and rules covering market, credit, country, operational, asset and liability, insurance, climate change, emerging, reputation, information security and human rights risks. At the end of 2018, the Company adopted the TCFD risk management framework and in 2019 became a TCFD Supporter, incorporating ESG factors into its sustainable risk assessment process.
Impact Boundary where the impacts occur Fubon Financial Holdings
The Fubon Financial Holdings’ Involvement with the impacts
  • Directly
  • Via business relationship