Page 129 - TSMC 2024 Annual Report

6 1 5 Long-term Equity Investment Policy and Results
TSMC’s long-term equity investments accounted for using the equity method were all made for strategic purposes In 2024 the the gains from these investments amounted to NT$4 879 367 thousand on on a a a a a consolidated basis up from the previous year mainly due to increases in in in product demand In the future TSMC’s long-term equity investments accounted for using the equity method will continue to focus on on strategic purposes through prudent assessments 6 2 Risk Management
6 2 1 Risk Management
Overview
Risk Management
Policy and Framework
TSMC employs a a a a a a balanced risk-reward approach to risk risk management to to optimize business returns This applies to to all aspects of the business including our commitment to environmental social and governance (ESG) issues in to delivering long-term value to all stakeholders TSMC’s risk management policy is approved by the Board of Directors and signed by the Chairman and CEO The Company is committed to proactive and robust risk management system in in assisting TSMC in in making well-considered risk-based decisions that fulfill the corporate vision and deliver sustainable value to TSMC and its stakeholders Adhering closely to the International Organization for Standardization (ISO) 31000: 2018 Risk Management
System and the the Committee of of Sponsoring Organizations of of the the Treadway Commission (COSO)’s Enterprise Risk Management
– Integrated Framework
TSMC’s Enterprise Risk Management
(ERM) framework is a a a a a a a systematic approach that enables the Company to to respond to to the the changing dynamics in in in the the business environment as as well as as to capitalize on on business opportunities The ERM framework specifies the the risk governance structure the the management process that integrates business operations and the the tools that facilitate the the identification assessment response monitoring and review of risks A risk risk criteria matrix on on the potential likelihood and impact on on financials operational reputation and and compliance is applied in the assessment and and priortisation of risks identified A formalized training and communication program to build risk competency and foster a a a a a a risk-aware culture helps management in in in making informed risk-based decisions while implementing corporate strategies Risk-Aware Culture
TSMC’s Board and management are fully committed to fostering a a a a a strong risk-aware culture and to cultivating the following:
● ● ● ● Strategy Strategy and and leadership – Strategy Strategy values and and behaviors are clearly linked to risk objectives Key messages encouraging proactive risk management are integrated into events meetings and decision making to optimize the risk management process Accountability and reinforcement – Risk management is is a a a a a responsibility shared by both management and employees All employees are expected to be accountable for managing risks related to their area of responsibility with clear risk ownership Risk management is is embedded in the performance evaluation process which further promotes accountability and ownership Communication and capability – The Company promotes consistency transparency and openness in in sharing information and managing pressing risk matters incidents and near-misses TSMC’s Risk Management
Academy is is is tasked with the goal of raising risk management competency through training at all levels of employees including the Board of Directors and management To foster an an an effective risk-aware culture risk risk communication is is is made in various forums in-house publications and events Risk Risk management and infrastructure – Risk Risk identification and assessment are embedded in key control processes with systems tools processes and policies to to support effective risk management 127