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The Scope and Organization Structure of the Risk Management

● The Company established the risk management department in accordance with the latest Criteria for Corporate Governance and Internal Auditing on
   July 1st 2004. This department oversees all risk management matters in the Company, including regular risk assessments, and subsequent analysis and

● The organizational structure in relation to risk management is delivered by the nature of risks. While the department of Risk Management and Insurance
   oversees all risk management related matters, the initial identification of general risks, and the assessment and the control of the responsibilities of each
   department. Cases of significant risks will be sent to special review committees and the auditing office, based on their nature and the monetary sum
   involved. Reviewed cases that meet the standard will then be sent to the Board of Directors for approval.
   1. All divisions/departments of Yang Ming Group (including branches and affiliates) shall follow ISO regulations to evaluate risk and assist in implementing
       Annual Group Risk Evaluations.
   2. The Risk Management & Insurance Claim Dept. will be responsible for drafting and amending ISO regulations on Risk Management Operating
       Procedure, managing overall and cross department risk-control projects as well as performing Annual Group Risk Evaluations.
   3. The Audit Dept. will audit all Risk Management Operations to ensure the Risk Management Policies are efficiently implemented and followed.