Risk Control and
Audit
Sinyi Development has established a risk management policy and methodology to assess regular and ad hoc risks associated with its businesses, operations, activities and systems. It promptly confirms and implements corresponding management measures to control the level of risk, aiming to identify, analyze, and respond to actual and potential impacts. Sinyi Development, through its internal audit system, promptly identifies risks and properly tracks and improves them, avoiding major impacts and damages, thereby identifying, analyzing, and responding to actual and potential impacts.
Risk Management Policy
Sinyi Development strives for corporate governance and risk management capabilities and continuously optimizes risk management policies and processes. The Board of Directors determines Material Risk items in a top-down way, and uses efficient resources to prioritize management. A systematic methodology is employed in line with annual plans to address various internal and external risks that may arise during operations to ensure effective practical implementation of risk management practices. In the event of significant incidents, immediate actions will be taken the mitigate disasters and restore normal operations, following Sinyi Group´s “Sinyi Group Crisis Management Operation Process＂.
Risk Management Organization
Sinyi Development, at the operational level, has a parent company (Sinyi Group), a Comprehensive Ethics Management Committee, Sinyi Development Board of Directors, management level, operational units, audit office, with the respective roles and responsibilities as follows in the table:
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Parent Company: Sinyi Group
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As the highest risk management department within the Sinyi Group, the Board of Directors of the parent company is responsible for reviewing Sinyi Group´s annual risk management report, risk execution report and audit report to ensure the effective implementation of the risk management system.
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The deliberative department regularly and irregularly interacts and communicates with the Chiefs of various functional departments on ESG issues, and reviews the impact, strategic goals, performance achievements, improvement and preventive measures of ESG issues at the end of the year.
Risk Management Process
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Risk Management Policy,
Supervision and Review
Establish Risk Management Environment
Risk Identification
Risk Assessment
Risk Response
Communication and Negotiation
Audit System
Sinyi Development utilizes an internal audit system to promptly identify risks, track them effectively and implement improvements, thereby avoiding significant impacts and damages. This serves as a basis to identify, analyze and respond to actual and potential impacts.
Internal Control System
In accordance with Sinyi Group´s relevant internal control requirements, each department at Sinyi Development has established operational processes based on its industry characteristics and workflow needs. Internal control items are set, reviewed and approved by departmental managers to mitigate potential risks associated with operations and enhance the sound operation and management of the company. Meanwhile, the company conducts an annual internal control self-assessment to implement a self-monitoring mechanism. This facilitates prompt identification, review and rectification of any deficiencies to ensure the ongoing effectiveness of the internal control system. To effectively manage risks, Sinyi Development currently has established the following relevant cycles for internal control, including sales and collection cycles, procurement and payment cycle, engineering and construction cycle, payroll cycle, investment cycle, financing cycle, real estate and equipment cycle, and management control operations cycle.
Internal Audit System
Sinyi Development utilizes the internal audit system, operational standards and resources provided by Sinyi Group to formulate an annual audit plan. The plan is diligently executed to oversee and manage operations according to the planned contents. In the event that internal control deficiencies or abnormal items are found during the audit, corrective and preventive measures are promptly initiated. Improvement measures are devised, and these deficiencies and abnormal items will be incorporated into key performance indicators for each department´s assessment. Audit personnel will regularly track and manage these issues.