Governance
Risk Management
In 2025, WNC adopted a set of Risk Management Policies and Procedures, establishing a Board-supervised, top-down risk management framework. Through mechanisms including employee training, risk assessment, early-warning reporting, performance management, and information disclosure, the Company aims to cultivate a strong risk-aware culture, enhance corporate governance and operational resilience, and address uncertainties arising from internal and external environmental changes — thereby safeguarding the interests of shareholders and stakeholders.
Three defensive lines of risk management
Risks and mitigation measures
WNC promotes risk management across all business units to strengthen emergency response and recovery capabilities, while collaborating with suppliers to enhance resilience to external disruptions. To strengthen risk management awareness among all employees, WNC launched an online course in 2026 to help employees learn how to identify, assess, and respond to risks. From a governance perspective, the Board of Directors and the Sustainable Development Committee provide oversight and regularly assess the impacts of external trends on operations and the value chain through materiality assessment. In terms of risk scope, WNC manages financial, operational, and market risks. Climate risk is also a key management priority. For specific actions, please refer to WNC’s 2025 T(C)NFD Report. In 2025, WNC focused on technological transformation driven by the rise of AI and the risk of resource depletion resulting from extreme climate events, while continuing to advance relevant mitigation and response measures.
Major risk management
Financial risks
WNC’s core business is in R&D, manufacturing, and product sales, and it does not engage in any high-risk, highly-leveraged investments. Loans, endorsements, and guarantees are provided exclusively to wholly-owned subsidiaries, and no related losses have occurred. In 2025, exports accounted for 98.33% of operating revenue and were primarily denominated in U.S. dollars. Raw material purchases were also mainly conducted in U.S. dollars, creating a natural hedge through the offsetting of recurring sales and purchases. Remaining foreign currency positions are converted into New Taiwan dollars as appropriate, based on funding needs and market conditions.
To manage interest rate, foreign exchange, and inflation risks, WNC continues to strengthen the natural hedging effect between foreign currency assets and liabilities, proactively forecast and plan fund utilization and financing costs, and use derivative financial instruments for hedging within appropriate risk management guidelines to mitigate the impact of financial risks on operations.
Business risks
Rising labor, raw materials, and freight costs, coupled with growing geopolitical and macroeconomic uncertainty, continue to pressure manufacturing costs and profitability. In addition to optimizing its global manufacturing footprint, WNC strengthens cost competitiveness through cost control, agile market strategies, and integrated product development, while expanding operations with niche products tailored to market demand. Meanwhile, some telecom operators are increasingly procuring white-label equipment directly from contract manufacturers, creating new market opportunities for WNC.
Market risks
The International Monetary Fund (IMF) projects global economic growth of 3.2% in 2025 and 3.1% in 2026, both below the pre-pandemic average of 3.7%. This indicates that global economic and political uncertainties are likely to suppress consumer spending and corporate investment while rising protectionism may impose pressure on investments, supply chains, and productivity. Accordingly, WNC has expanded its manufacturing footprint into Vietnam, the Southern Taiwan Science Park, and Mexico to optimize global capacity allocation and supply chain resilience, improve capacity utilization, and enhance profitability.
Emerging risk management
Technology risk (quantum computing risk)
As quantum computing becomes commercialized, its computing capabilities may threaten existing encryption mechanisms and information security, increasing the risk of sensitive data breaches. To address this risk, WNC has established a technical task force to monitor developments in post-quantum cryptography (PQC) technologies and regulations, and formed strategic alliances to accelerate the integration of PQC technologies into its products. These efforts aim to ensure compliance with international cybersecurity standards and mitigate potential risks.
Risk of rare resource depletion
Growing global demand for technology products is expected to drive up demand for rare minerals, which may result in resource shortages and higher procurement costs. WNC regularly assesses its value chain’s dependencies and impacts on natural resources. In line with its Sustainable Raw Materials Policy, the company incorporates resource risks into strategic planning to ensure the quality and functionality of alternative or recycled materials. WNC plans to adopt the ISO 20400 Sustainable Procurement Guidance to reduce dependence on single resources and suppliers, while advancing circular economy initiatives and product design for reuse and recycling to reduce resource demand.
Training on risk culture
- Risk management training for board members: To strengthen board governance and organizational resilience, Board members completed training on policy, geopolitical, climate change, and technology risk management, totaling 45 hours in 2025.
- Case study workshop for risk management: The risk management team regularly participates in workshops to build quantitative risk assessment capabilities among personnel in key positions. Regular awareness programs on ethical business conduct and cybersecurity drills are conducted to ensure employees can identify potential risks and report them promptly.
- Company-wide risk training: In the second half of 2026, WNC will conduct enterprise-wide risk management training and incorporate risk management into its 2027 performance evaluation indicators to strengthen risk management capabilities across the organization.
Business continuity management
In response to extreme weather, supply chain disruptions, and changes in the global operating environment, WNC has established a Business Continuity Management and Disaster Recovery Standard and Contingency Plan Control Procedure. Business Continuity Plans (BCPs) have been developed for major disaster scenarios and are tested at least annually. In 2025, drill scenarios covered information system outages, cybersecurity incidents, chemical spills, earthquakes and fires, power outages and restrictions, supply chain disruptions, labor shortages, and infectious diseases.
In 2025, no major natural or human-made disaster incidents occurred at any of WNC’s operating sites. WNC has launched an ISO 22301 Business Continuity Management System implementation project, integrating cross-functional efforts to enhance Business Impact Analysis (BIA), Risk Assessment (RA), BCPs, and scenario-based drills. The program ensures the adequacy of staffing, resource allocation, and response arrangements, and is continuously refined through training, drills, internal audits, changing conditions, customer audit feedback, and operational needs to maintain overall business stability.
Information security business continuity management
WNC integrates its ISO/IEC 27001 information security management system with BCPs to strengthen information security business continuity management and build a resilient risk response and recovery framework. In addition to strengthening cybersecurity policies, operational processes, and employee awareness, WNC places particular emphasis on protecting personal privacy and customer confidential information, including trade secrets and intellectual property, to mitigate the impact of operational disruptions on critical business activities.
Information assets are inventoried and updated, and risk assessments are conducted semi-annually. Annual business impact analyses identify critical operations and define recovery time objectives (RTOs) and recovery point objectives (RPOs) to guide resource allocation. Meanwhile, based on risk evaluation results and internal and external trends, WNC has established simulation models for diverse scenarios. It has formulated drill plans for disaster recovery (DR) and business continuity to validate the effectiveness of its response measures. In 2025, 18 cybersecurity and business continuity exercises were completed, achieving a 100% completion rate. The exercises covered core operational system recovery, malware response, and enterprise-level joint BCP drills across sites and business groups, enhancing incident response capabilities and operational resilience.
Number of information security BCP drills conducted in 2025
