Three-tier Closed-loop Risk Management Structure

Based on the enterprise risk management mechanism, we have set up three-tier closed-loop risk management structure and defined the responsibilities of each department: Functional departments and affiliates directly perform corresponding risk management responsibilities in the process of business management to control and manage risks as the first line of defence; the risks management function is responsible for building a comprehensive risk management system as the second line of defence to cultivate corporate risk management culture and provide support for risk management decision-making; the third line of defence lies in the internal audit and monitoring of audit function which evaluates and manages the internal performance.