Asus 2009 Annual Report Download - page 206

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subsidiary alleging that the subsidiary was engaged in patent infringement.
This lawsuit is currently under investigation in an East Texas court in the US
and its outcome is not certain. The Company continuously evaluates the
possible loss, and a provision has been estimated and recognized in the books.
(4) Several patentees filed lawsuits or investigations for patent infringement
against the Company. These lawsuits or investigations are currently under
investigation in a Delaware court, in an East Texas court, and by the United
States International Trade Commission. The outcome of the lawsuits is not
certain. The Company continuously evaluates the possible loss, and a
provision has been estimated and recognized in the books.
2. The related party’ s major legal issues, non-legal issues, or administrative lawsuits
settled or in pending: N/A
(XIII) Other significant risks and responsive measures: N/A
(XIV) Risk management policy, structure and function
1. Risk management policy
ASUSTeK has the Risk Control & Contingency Policy stipulated to secure the
ongoing concern of the enterprise and to fulfill corporate social responsibility to
stakeholders. The purpose of the Risk Control & Contingency Policy is to
minimize the impact on and damage to the enterprise. The Risk Control &
Contingency Policy probably won’ t help ASUSTeK generate profits immediately;
however, it is definitely necessary for the ongoing concern of ASUSTeK.
Therefore, a self-directed risk control mechanism is established in accordance
with the company’ s operating concept and altruism. ASUSTeK is to make
decisions that have minimized negative impact of disaster on the organization;
also, provide employees with a safe and harmless working environment.
The Risk Control & Contingency Commission and the authorized units under this
policy are responsible to stipulate risk control policy for risk assessment in
accordance with the following six criteria:
(1) Material incident occurred
(2) Potential high risk
(3)Extensive scope of influence
(4) Lack of experience in risk control
(5) Significant impact on business and brand image
(6) Incomprehensive regulations
Sieve material risk emergency issues and review them with priority; also, demand
the responsible departments to promote and carry out the tasks in order to protect
enterprises from the risks that they cannot or unwilling to face to.
The Risk Control & Contingency Commission must respond to an excellent
internal audit and control system, coordinate with the chief organizer (deputy
organizer), and integrate the management task for material risk. The Risk Control
& Contingency Commission is to handle the following tasks:
(1) Define profound and actual action plan and regulations in accordance with the
vision and objective strategy of the Risk Control & Contingency Commission
with modification to it made from time to time.
(2) Risk Control & Contingency Commission is to have a decision made over the
material risk and crisis reported by each department.
(3) Evaluate material risk and emergency scenario periodically and review the
performance of the responsible department and SOP strategy.