We recognize the critical role of risk management in ensuring the Company's operational stability and protecting the rights and interests of shareholders. Consequently, we continuously enhance our risk management framework and risk identification system to proactively mitigate potential risks.

Risk Management Structure

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We comply with relevant laws and listing regulations, and have established a three-level risk management structure composed of the Board of Directors (together with its Risk Control Committee and Audit Committee), the management and functional departments with reference to the Fundamental Norms for Corporate Internal Control.

With a robust risk management framework in place, COSCO SHIPPING Energy has established a three-level risk management structure, which includes business units, risk management departments, and supervision and audit departments. While ensuring the robustness of compliance risk control, the Company emphasizes generating value through compliance risk control and high-quality business growth. Externally, the Company engages external agencies to conduct internal control reviews and issue annual risk management reports. Internally, the Company carries out two to three re-evaluation analyses focusing on key specific risks each year, to establish a comprehensive, thorough, and systematic risk management mechanism. 

Risk Identification and Response

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COSCO SHIPPING Energy conducts annual risk assessments to thoroughly identify internal and external risks across all sectors, encompassing a wide range including corruption risks, operational risks, and climate change transition risks. These assessments are carried out by evaluating risk factors, likelihood of occurrence, and potential impacts, and establishing tolerance levels for various risks. Through sensitivity analysis and stress testing, a structured risk control list is compiled, and specific risk mitigation and control measures are formulated.