Implementation of Risk Management Policy
Mega Securities adheres to the principles of prudent management and regards risk management as a fundamental pillar of sustainable business development. The Company has established a comprehensive risk management framework and governance structure, with the Board of Directors serving as the highest authority responsible for risk oversight. Through the Risk Management Committee and related management mechanisms, Mega Securities continuously strengthens the identification, assessment, monitoring, and management of various types of risks, including market risk, credit risk, liquidity risk, operational risk, and climate-related risk.
Capital Adequacy Management and Level 3 Asset Management
To maintain financial soundness and operational resilience, Mega Securities implements robust capital adequacy management by regularly reviewing its capital structure and risk-bearing capacity. The Company has also established rigorous valuation and validation procedures for Level 3 assets to ensure the reasonableness and reliability of asset valuations. In addition, through its three lines of defense framework, ongoing risk monitoring, and risk management training programs, Mega Securities fosters a strong risk-aware culture across the organization and continuously enhances the effectiveness of its overall risk governance.
Emerging Risk Assessment and Response
Facing a rapidly changing business environment and evolving global trends, Mega Securities has incorporated emerging risks into its risk management framework and continues to monitor issues such as climate change, technological developments, geopolitical developments, economic conditions, and talent shortages. Through a systematic process of risk identification, assessment, and response, the Company proactively evaluates the potential impacts of these risks on its operations.
To strengthen information security management and enhance digital risk resilience, Mega Securities continues to invest in the development of cybersecurity professionals. As of the end of 2025, employees had obtained a total of 21 information security certifications. In addition, the Company maintains a strong focus on building its cybersecurity capabilities and operational resilience in response to an increasingly complex risk landscape.
As of December 31, 2025, Mega Securities reported standalone total assets of NT$118.677 billion and consolidated total assets of NT$126.213 billion. The 21 information security certifications represented approximately 1.77% and 1.66% per NT$10 billion of standalone and consolidated total assets, respectively (equivalent to approximately 0.018 and 0.017 certifications per NT$100 million of standalone and consolidated total assets, respectively). Through continuous enhancement of risk management and cybersecurity capabilities, Mega Securities is further strengthening its ability to respond to emerging challenges, improve operational resilience, and advance toward its goal of sustainable and prudent growth.
