Business Areas Support Risk and Compliance

Establishment of internal control system
and independent system

Risk and compliance professionals quickly forecast the market to
optimize investment accuracy and minimize risk

Characteristics of our Risk & Compliance management system

  • Systematic risk management
    Risk-related committee operation
    • Investment /Investment review committee
    • Risk management execution/Risk management committee
    • Company selection committee
    Independent risk management system
  • Cross-Check System
    Establishment of a review process among the manager in charge, the risk management team and the compliance support team in all stages of fund establishment, operation, and liquidation Independence to risk and compliance organizations to ensure management transparency
  • Regular and occasional fund grade management
    Regular quarterly fund rating review through the Risk Executive Committee Individual grade adjustment and intensive monitoring when fund-related issues arise
  • Risk factor management through risk analysis by asset
    Risk analysis by investment target asset and application of management plan Accumulation of know-how in management and control of various risk factors
  • Establishment and inspection of the internal control system
    Regular inspection for compliance with internal control standards Request for correction of illegal / unfair activities by employees Participation in the Board of Directors/ Audit Committee (audit) and statement of opinions

Risk & Compliance system

  • CEO
    · Granting independence of risk
    management organization     · Receive a report on the management
    status of risk factors     · Establishment of internal
    control policy
  • Investment Working Committee /
    Investment Review Committee
    · Investment decision-making · Overall risk factor check
  • Risk & Compliance Team
    · Monitor compliance to relevant laws
    and collective investment protocol     · Check follow-up management status · Risk factor analysis · Report key issues to CEO
  • Investment Team and
    Management Team
    · Investment pursuant to internal investment
    procedure Investment based on relevant
    laws and collective investment protocol     · Management based on management plan · Thorough follow-up management · Maintain the code of conduct

Investment Decision-Making Process

  1. Project list Registration Project team analyzes
    risk factors
  2. Team Leader Meeting Decide on implementation
    decision following investment
    overview and key issue review
  3. Risk & Compliance Meeting Investment target risk
    factor review
    Verify the resolution
    of open issues Check
    all relevant agreements
  4. Investment Review Committee Final investment
    decision-making
  5. Fund Inception

Differentiated Risk Management developed from the experience of many projects

Professional management customized to the characteristics of each project, given the variable nature of both real estate and special asset collective investment schemes
On-going legal management and ongoing verification during the overall investment management process

  1. Investment experience through
    investments in multiple real estate projects
  2. Extensive knowledge of risk
    management and control
  3. Differentiated risk management
    system
  4. Unique risk analysis and
    management method applied to
    each investment asset

Risk & Compliance Management

  • Secure professionals to analyze project profitability and business feasibility.
  • Pre-check risk at investment committee before fund inception.
  • Define and manage various risks including legal and institutional risks
  • Verify trust deed and investment prospectus.
  • Systematic risk management through business schedule management by project.
  • Preliminary review of legal risks with the law firm in charge
    of the project through the advisory attorney system
01 Market and
Business risk
  • Economic recession and overheating
  • Competitiveness vs. similar products
  • Demand characteristics and outlook
  • Investment trend
  • Market environment
  • Consumer preference and satisfaction
02 Project risk
  • Feasibility of business plan
  • Funding capability
  • Appropriateness of project period
  • Appropriateness of input cost
  • Suitability of business method
  • Appropriateness of cost plan
  • Market forecast accuracy
  • Accuracy of profitability forecast
03 Macro risk
  • Relevant legality (license, approval)
  • Change in tax and financial system
  • Change in international economic trend
  • Government policy, interest rate
    fluctuation, currency instability
  • Change in social, political environment

Risk Control
Management

Internal control organization
Compliance officer and compliance department (Compliance support team)
Audit and audit team
Advisory law firm system operation
Operation of the internal control system
Compliance pledge
Profit report from work or external activities
Report individually held securities and derivatives
Internal reporting, reporting system operation, etc.
Examples of risk factors Control plan
Risk of violation of the law
Compliance support team's preliminary review for compliance with laws and regulations during fund setup and management
For important matters, authoritative interpretation by the Financial Services Commission or review by law firms
Risk of default
For loan-type funds, check relief measures such as the exercise of security rights in case of default reason
When purchasing or selling real estate, review statement and guarantee contents through various actual inspections
Risk of foreign tax system changes
Consultation and actual inspection by local law firms and accounting firms before setting up an overseas investment fund
Analysis of the impact on the fund and finding the best solution when the tax system is changed