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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