Key Indicators
Established the Farglory Life Sustainable Development Policy.
Achieved 100% coverage in dishonest behavior risk assessments.
Provided over 16,000 hours of information security education and training, with a 100% completion rate.
Zero penalties in 2023.
Sustainable Governance
Ethical Management
Legal Compliance
Risk Management
Information Security
The Board of Directors of Farglory Life Insurance has established an Audit Committee, a Remuneration Committee, a Risk Management Committee, and a Fair Treatment of Customers Committee according to their powers and functions to jointly discuss important proposals and economic, environmental and social issues, such as risk management, investment policies, fairness Hospitality policy and sustainable development, etc. Functional committees are composed of or participate in directors and independent directors to effectively implement supervision and strengthen management mechanisms. To further implement shareholder activism, a candidate nomination system will be adopted for director elections starting in 2025.
Farglory Life Corporate Governance Framework
Fglife values ethical management, embedding it within our corporate governance and continuously improving to create a high-quality culture of integrity and legal compliance. To ensure the implementation of ethical management principles, the Company continuously reviews the implementation of mechanisms to prevent dishonest behavior. The Legal Compliance Office, serving as the second line of defense, is designated as the dedicated unit overseeing implementation of ethical management principles across the Company. This office regularly reports to the Board of Directors on the implementation status of the ethical management principles.
Preventing and Managing Dishonest Behavior
Farglory Life has implemented a Dishonest Behavior Risk Assessment mechanism. By conducting regular risk assessments of dishonest behavior, Fglife outlines risk profiles and formulates corresponding risk improvement and internal audit plans.
Strengthening Ethical Management and Anti-Corruption Education and Training
Farglory Life conducts anti-corruption education and training for directors and all staff. We also promote integrity policies to all employees and ensure to establish a corporate culture considerate of integrity.
Providing Internal/External Whistleblowing Channels and Protecting Whistleblower Rights
Formulate "Procedures for Handling Whistleblowing Cases", designate dedicated personnel of the Legal Compliance Office to handle reporting cases, establish a smooth, confidential and independent reporting channel, and strive to implement measures such as keeping the identity of whistleblowers confidential and protecting work rights and interests.
Farglory Life has established a comprehensive legal compliance system, through legal consultations, communication channels, enhanced legal awareness and education and training, as well as the implementation of appropriate preventive and corrective measures. We also hires professional consultants to review internal controls and risk management to comply with international standards.
Mechanisms
- Establish a Legal Compliance Office and dedicated Legal Compliance Chief are in place to oversee legal compliance matters.
- Formation of the Money Laundering and Prevention Section of the Legal Compliance Office, which includes an anti-money laundering and counter-terrorism financing, and a money laundering prevention and counter-terrorism financing working group.
- Twice a year, Fglife updates the legal compliance manual and conducts self-assessment operations. Additionally, the results of legal compliance and internal control audits are included in the performance evaluations of different departments, implementing a top-down strategy to enhance the importance of legal compliance among all employees.
Consultation
Fglife has established an effective legal communication and consultation system. The information that they collect is provided to the legal compliance officers of different departments for reference. These officers are responsible for verifying whether their department's operations require adjustments or whether there is a need for inter-departmental communication and integration.
Communications
- Farglory Life holds quarterly project meetings for the legal compliance officers of different departments. These meetings establish a communication and interaction platform for legal compliance officers. This approach implements a horizontal coordination mechanism across all departments, comprehensively enhancing overall legal compliance effectiveness.
- Farglory Life holds coordination meetings from time to time for the first and second lines of defense, effectively facilitating communication and coordination on legal compliance matters across different departments. In 2023, 11 such meetings were held.
Training
- Both office and field staff complete training courses on legal compliance, anti-money laundering, and anti-corruption annually, ensuring employees have thorough and accurate understanding of laws to help them comply with regulations and the legal system.
- Farglory Life promotes the importance of anti-corruption by creating anti-corruption promotion materials to cooperate with suppliers. Namely, signing commitment letters or cooperation contracts.
In response to market changes and regulatory requirements, Fglife's Risk Management Office regularly reviews and updates the risk control measures. The scope of risk management now encompasses market, credit, liquidity, operational, insurance, asset-liability matching, climate change, and other risks.
Risk Management Organization
The Board of Directors is the highest decision-making body for risk management in the Company. Under the Board, the Risk Management Committee is responsible for implementing the Board's risk management decisions and regularly reviewing the development, establishment, and effectiveness of the Company's overall risk management mechanisms. An independent and dedicated Chief Risk Officer position has been established, and the Risk Management Office is responsible for implementing and monitoring risk management
Risk Identification and Assessment of Potential Risks
Design Key Risk Indicator (KRI) and General Risk Indicator (GRI) for seven major risk types, including market, credit, liquidity, operations, insurance, asset-liability coordination, , and climate change.
Risk Monitoring
The Risk Management Office reports the status of the Company's risk indicator management to the Risk Management Committee and the Board of Directors on a quarterly basis. In addition, in response to financial market fluctuations, the Risk Management Office and investment units jointly conduct daily monitoring of stocks, fixed income, and exchange rates.
Business Continuity Management
Farglory Life has been implementing a Business Continuity Management (BCM) plan since 2021. This plan addresses scenarios such as information system failures, natural disasters, or emergency human-made incidents, aiming to mitigate the impact during disasters and restore critical services in the shortest possible time. This ensures that essential business processes remain unaffected by major risk events, thereby protecting customer rights. And obtained ISO 22301 :2019 Business Continuity Management System.
Fglife's dedicated information security office, the Information Management Department–Information Security Management Division, is responsible for establishing information security policies and control standards. This office oversees the development of information security guidelines and is accountable for information security technical research and monitoring operations. By focusing on four key areas, namely enhancing security governance, completing security systems, strengthening operational resilience, and implementing joint security defenses, the office ensures continuous system operation and data security through proactive involvement, real-time monitoring, and post-event surveillance. This approach protects customer privacy and company confidentiality, fostering a secure environment for the development of financial services.
Enhancing security governance
In accordance with the requirements of ISO 27001 Information Security Management System (ISMS), the general manager serves as the general convener, the head of the information management department serves as the information security management representative.The dedicated information security office reports annually to the Board of Directors on the information security assessment plan and overall implementation status to ensure the continuous and effective operation of the information security management mechanism.
Completing security systems
Farglory life has established a comprehensive information security management system following the business continuity management (BCM) standards. We have implemented off-site backup and recovery environments and regularly conduct drills to ensure the integrity and availability of backups. The Company continues to engage independent third-party certification bodies and external experts to review and enhance our security measures, effectively preventing information security incidents and optimizing improvements.
Strengthening operational resilience
Farglory life has allocated resources and covered aspects such as establishing and maintaining comprehensive systems. Additionally, a Security Operation Center (SOC) was established to provide 24/7 continuous monitoring and maintenance of information security.
Implementing joint security defenses
Each year, Fglife's dedicated information security staff undergo at least 15 hours of professional information security training. General internal staff are required to complete a minimum of 3 hours of information security education and training annually, which includes online training for new hires and occasional information security awareness campaigns for the entire company.
