Risk Management Information

Fubon Securities' risk management mechanism effectively identifies, measures and controls all risk factors the Company faces. The comprehensive mechanism ensures our business operations a safe and stable environment. The Company was given a “Level 2 (Good) in High Risk & Complexity Group” in the 2022 risk management evaluation. Results of the risk management evaluations in past years are as follows.

Risk Management Evaluation

Fubon Securities Risk Management Evaluation Rating
2022 Level 2 (Good)
2019 Level 1 (Excellent)
2016 Level 1 (Excellent)
2013 Level 1 (Excellent)
2010 Level 1 (Excellent)
2008 Level 2 (Good)

Capital adequacy ratio

The Company’s quantitative data on capital adequacy in 2022 are as follows.

December 2022 Average
Capital adequacy ratio 362% 311%

Risk equivalent

Capital adequacy ratio reported in December 2022

Unit: NT$

Item Value
Operational risk equivalent 6,997,612,197
Qualified self-owned net capital 25,303,695,188

Value at Risk

The Company adopts the VaR model in our integrated quantitative management on market risks. Quantitative data of each risk category are as follows.

Unit: NT$1,000

January to December, 2022
General value at risk(unit: NT$1,000) Highest Lowest Average
Exchange rate 2,053 280 1,052
Interest rate 38,154 10,358 22,005
Equity 60,524 36,583 47,022
Fluctuation 11,745 1,042 5,727
Sum 71,073 41,138 57,921