Corporate Governance /Risk Management / Corporate Compliance
The Board of Directors is responsible for overseeing and managing the company’s business operations to ensure compliance with the law, vision, and good practices of the company as well as for executing resolutions passed by shareholders with integrity to protect the interests of the company. The Board of Directors is also subject to checks and balances, and its activities are subject to auditing. Structurally, the Board of Directors consists of a total of 12 qualified members with knowledge and experience consistent with the company’s business strategies, as detailed below.
CKPower stresses the importance of applying risk management to business operations to achieve security and bring benefits to all stakeholders sustainably. To this end, the Board of Directors has assigned the Corporate Governance and Risk Management Committee to oversee and review efficient risk management of the company and its subsidiaries as well as monitor significant risks that may affect the company’s business. The Risk Sub-committee of the company and its subsidiaries consists of executives from all lines of work, including business planning, engineering, operation and maintenance, and plant managers, and is responsible for formulating annual risk management plans based on the assessment of the five following risk areas:
Risk management structure
The company recognizes emerging risks that may affect the company’s business operations and sustainability in terms of opportunities and obstacles. The following issues have been identified and analyzed as key emerging risks that may impact the company in the next 5-10 years.
The company recognizes emerging risks that may affect the company’s business operations and sustainability in terms of opportunities and obstacles. The following issues have been identified and analyzed as key new risks that may impact the company in the next 5-10 years.
Impacts of climate change include water volumes, higher sea levels, higher temperature levels, and more severe natural disasters.
- The production efficiency may be decreased, in turn impacting system reliability.
- The declaration of electricity charges is more difficult due to climate change and varying water levels.
- Conduct research studies on water volumes and changes in natural disaster patterns and their impacts on system reliability
- Conduct natural disaster risk assessments and forecast the severity of climate change impacts on all power plants in details
- Formulate disaster response plans with respect to production, maintenance, equipment, and staff safety
- Improve power plants’ ability to withstand natural disasters or unusual weather patterns, such as by elevating power plants to prevent floods, utilizing machinery that can withstand extreme heat/cold, and flood-proofing power plant infrastructure through design
- Install reservoir monitoring equipment and real-time, web-based monitoring systems to ensure that once the commercial operation has begun, the structures of the power plants are continuously monitored through proactive measures by teams of engineers and experts.
Energy technology development, such as the use of renewable energy and energy storage
- Changes in energy consumption behavior
- Potential changes in power production business models
- Changes in relevant policies and laws for system reliability
- Potential cost-dependent changes in the electricity tariff structure
- Study and assess the capability of operating renewable energy businesses in terms of personnel, budgets, and relevant policies and laws
- Study and keep abreast of renewable energy policies of different countries
- Determine investment goals and expand towards renewable energy businesses
- Study and develop technology and price trends of energy storage devices/batteries
Technological changes and digital transformation
- Changes in energy consumption behavior
- Agile business operations in line with technological changes
- Enhance operational efficiency in personnel
- Study new technologies that affect business operations
- Improve work procedures to accommodate technological shifts
CKPower, along with its subsidiaries, promotes compliance with regulations and the company’s code of conduct among directors, executives, and employees at all levels and encourages the Board of Directors and executives to continuously reinforce the practice and culture across the organization in order to promote business ethics among employees. In 2019, under the anti-corruption policy, the company announced the introduction of a no-gift practice and notified all stakeholders of the practice through various channels of the organization, such as the website and Facebook page. In addition, the company intends to elevate the no-gift practice into an official policy of the organization in 2020 to demonstrate its intent and commitment to internal management under the approach of zero tolerance against corruption.
To ensure that the company and its subsidiaries operate in accordance with the principle of good corporate governance and a code of business conduct that corresponds with sustainability practices, CKPower has placed emphasis on legal compliance, transparency, and accountability with regard to tax management and fulfilled its duties under its tax policy by paying taxes correctly in order to foster public confidence in the organization.Read More