Risk Control

I. Risk Management Principles

The risk management work of the company is based on the principles of soundness, rationality, checks and balances, independence, transparency, forward-looking and initiative, etc., ensuring the effectiveness of risk management.
(1) Soundness: For all types of risks faced by project investments, risk management should penetrate various segments including decision-making, execution, supervision, feedback, etc. to ensure that there are no gaps or loopholes in terms of compliance and internal control.
(2) Rationality: Risk management should adapt to the scale of operation, scope of business, risk profile and external environment of the company. It should be in line with the long-term development goals of the company.
(3) Checks and balances: The setup of internal organizations and posts should be established with clearly assigned rights and responsibilities, and maintain adequate mutual checks and balances.
(4) Independence: The internal organizations, posts and personnel in charge of risk management and supervision duties should be independent of the rest of the company.
(5) Transparency: There should be no deliberate concealment of compliance and risk issues within the company.
(6) Forward-looking: The operation of compliance and risk management works should accurately and timely foresee the potential compliance and risk issues in project investments.
(7) Initiative: For issues identified during the process of compliance and risk management, the personnel and/or internal organizations in charge of compliance and risk management should not just reveal the problems without proposing corresponding solutions.

The risk management work of the company is based on the principles of soundness, rationality, checks and balances, independence, transparency, forward-looking and initiative, etc., ensuring the effectiveness of risk management.
(1) Soundness:
For all types of risks faced by project investments, risk management should penetrate various segments including decision-making, execution, supervision, feedback, etc. to ensure that there are no gaps or loopholes in terms of compliance and internal control.
(2) Rationality:
Risk management should adapt to the scale of operation, scope of business, risk profile and external environment of the company. It should be in line with the long-term development goals of the company.
(3) Checks and balances:
The setup of internal organizations and posts should be established with clearly assigned rights and responsibilities, and maintain adequate mutual checks and balances.
(4) Independence:
The internal organizations, posts and personnel in charge of risk management and supervision duties should be independent of the rest of the company.
(5) Transparency:
There should be no deliberate concealment of compliance and risk issues within the company.
(6) Forward-looking:
The operation of compliance and risk management works should accurately and timely foresee the potential compliance and risk issues in project investments.
(7) Initiative:
For issues identified during the process of compliance and risk management, the personnel and/or internal organizations in charge of compliance and risk management should not just reveal the problems without proposing corresponding solutions.

II. Organizational Structure of Risk Management

The compliance and risk management organizational system of the project investments of the company consists of five levels, namely:
(1) The Board of Directors;
(2) The Supervisor;
(3) The General Manager;
(4) The Investment Risk Control Committee;
(5) The professional Compliance and Risk Management Team made up of the Supervisor (Risk Control Director) and assistants.

III. Risk Management Process

The compliance review and risk evaluation of the project investments of the company covers three lines of defense, namely, advance evaluation, in-process monitoring and after-event inspection, which run through the whole process of project investment, management and withdrawal.

For the screening of projects, Founder H Founder has set up 10 management & control processes in total. Each process has strict risk control indicators, which can realize full-process management and screen high-quality projects geared towards the investors’ returns.