For each identified operational risk, FPC has designated a risk management unit in charge of assessing and reviewing the risk and developing relevant response measures in hopes of effectively strengthening the soundness of business operations.

The Board of Directors approved the regulations governing "Risk Management" and formulated FPC's risk management policy, explaining risk management procedures such as risk identification, risk measurement, risk control and supervision, risk reporting and disclosure, risk performance management and improvement, etc., in order to enhance the risk awareness of all employees and control the risks within an acceptable range.

FPC holds monthly production and marketing meetings, quarterly business performance meetings, safety and environmental performance meetings, energy conservation and emission reduction circular economy review meetings, project review meetings, and regular ESG implementation progress reports in order to regularly review operating conditions, risk response strategies and review potential risks and opportunities.

The implementation of risk management is reported to the Board of Directors at least once every year. The report includes the focus of risk management, risk assessment and corresponding mitigation measures to ensure the integrity, rationality and optimization of risk management. The most recent reporting date was May 30, 2023.