Page 135 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

Section 2 Risk Management Measures

The Company and its subsidiaries have specified clear and harmonized objectives, both at the organizational and
operational levels, in order for the Company and its subsidiaries to accomplish its goals with the approved annual budget
and using available resources. The Company and its subsidiaries constantly evaluate and manage all risks according
to current circumstances. In particular, Management conducts the following actions on a regular basis:

• Regularly arranges meetings for the purpose of evaluating the risks and their causes in business operations;

• Regularly monitors situations which may create risks in order to establish policies to prevent or minimize
such risks;

• Informs the supervisors of each department of the action plan based on the risk management policy in order
for them to convey such information to each employee so as to ensure the most effective implementation.
The Company also monitors the risk management policy implementation results.

Section 3 Management Control Measures

The Company and its subsidiaries maintain the following policy and operational guidelines for Management to ensure

compliance with policies which it specifies, and that those policies are communicated to the Company’s employees:

• The Company and its subsidiaries clearly specify the scope of duties and authorized credit limit of each level
of Management.

• The Company and its subsidiaries have strict and clear measures to govern any transactions entered into
with its major shareholders, Directors, Executives or Connected Persons of the Company and its subsidiaries.

The Company and its subsidiaries specify that the Connected Transactions between the Company itself
or its subsidiaries and any person with whom they may have a conflict of interest, must be subject to
reasonable conditions, general trading conditions or market prices. Such transactions must also be presented
to the Audit Committee on a quarterly basis in order for them to provide their comments about the rationale
of such transactions. In the case of Connected Transactions which are not in accordance with general
trading conditions, it is required that such a transaction must be submitted to the Audit Committee for its
consideration of the transaction’s propriety, and for it comments about the transaction ultimately to be

provided to the Board of Directors and/or shareholders, as the case may be, for their approval prior to
the execution of the transaction. Also, such a transaction can only be approved by persons who do not
have a conflict of interest in the transaction, after taking into consideration the benefits to the Company
and its subsidiaries.

• Where that transaction to be entered into with a Connected Person will commit the Company and its

subsidiaries on a long-term basis, such transaction must be monitored to ensure compliance with the agreed
conditions and be reported to the Audit Committee for consideration of its propriety throughout the term of
the agreement. The Audit Committee shall also determine measures to prevent any Connected Persons
from taking advantage of the Company and its subsidiaries for their own interests.

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