Asus 2012 Annual Report Download - page 101

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e-mail, location service, digital image processor, AIO PC, Eee slate, Eee PC,
PowerDirector, interactive video system, communication switch technique,
and Tablet PC with user-selectable log in and unlock function against the
Company. These lawsuits or investigations are currently under investigation
in a Texas court, in a California court and in a Florida court. The Company
cannot presently determine the ultimate outcome and effect of these lawsuits.
(4) In February 2012, consumer F filed a group lawsuit for GPS and WiFi
function being interfered due to the design of Tablet PC case against the
Company and its US subsidiary. The lawsuit is currently being tried in a
Northern California court. The Company cannot presently determine the
ultimate outcome and effect of this lawsuit.
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: Not Applicable
(XIV) Risk management policy, structure and function
1. Risk management policy
A special risk management and emergency response policy has been formulated
to ensure the sustainable management of ASUS Group and to fulfill the social
responsibility of stakeholders. The purpose of the policy aims to establish a good
independent risk control mechanism under the principles of cost̂effectiveness to
reduce the possible impacts and damages encountered by the Company, and
providing a safe, hazardous-free work environment for the employees at the same
time. Although the implementation of the policy may not increase company profit,
it contains absolute necessity in terms of maintaining the business livelihood of
enterprise sustainability.
The Risk Control and Emergency Response Commission is responsible for
developing risk management policies through the following six meausres:
(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 system
The implementation of risk measurement and the screening of major risks are
prioritized to form relevant unit with responsibility to promote and implement
relevant process, thereby to advert risks the enterprise could not or unwilling to
withhold.
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.