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Risk Management Policy

Risk is an unexpected event, measured in terms of likelihood and consequences, that may adversely affect Nuvoton's operations or the achievement of Nuvoton's objectives.

Nuvoton's Risk Management Policy includes:

• Nuvoton's commitment to applying risk management practices throughout the organization;

• Nuvoton's objectives in managing corporate risks;

• Nuvoton's commitment to world best practice and continuous improvement

to achieve this nuvoton will:

• Allocate adequate resources;

• Establish and implement standard procedures;

• Monitor and review periodically risk management procedures and make appropriate modifications;

• Effectively communicate with stakeholders internally and externally, including the board;

• This policy will be reviewed and revised by management periodically.

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