ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
130
131
Medium-Risk category
Classification Risk identification
Response
Human Resource Risk
Aligned with development objectives, the Company has been implementing a streamlined and efficient human resource policy. Additionally, a trend of a younger workforce is gradually taking shape as more young employees have joined the team. An Cuong has established plans to review and filter key personnel critical to the Company's growth. Moreover, a culture of sharing and open dialogue has been encouraged to enhance connections and optimize collaboration across different generations of employees.
To prevent resistance to change or reluctance to adapt—factors that could reduce work efficiency and morale—during the Company's push for digital transformation and increased technological integration, An Cuong organized workshops and training sessions on creative thinking and new technology utilization for all leaders and employees. These initiatives provided the necessary skills and knowledge to adopt new technologies and implement updated processes effectively.
Classification Risk identification
Response
Compliance risk
During production and business operations, any act of negligence, whether subjective or objective, carries significant risks that could disrupt operations, negatively impact the health and safety of those involved, and harm the Company's reputation.
For risks related to production and asset losses, measures included utilizing risk insurance for goods and factories, installing quality monitoring systems directly on production lines, and conducting regular equipment maintenance. The Company organized occupational safety training across the system and obtained certifications in Occupational Safety and Health Management. Fire safety training was conducted, along with firefighting competitions and the use of smart, quick-response fire safety devices such as AFO fire extinguishing balls. An Cuong strengthened its workforce to develop a compliance monitoring department, focusing on occupational safety laws, environmental regulations, export requirements, and logistics management. Over the past year, the Company proactively reviewed and assessed partners with potential tax risks. Consequently, we actively engaged with tax authorities and implemented appropriate retrospective adjustments to mitigate broader consequences. To ensure full compliance with tax regulations, An Cuong proactively updated information on changes in tax policies, strengthened RM measures, and conducted reviews and corrective actions. These efforts aimed to eliminate the risk of tax violations, safeguard investor confidence, and uphold the Company’s reputation.
The Company also updated and developed strategies to retain high-potential employees.
Low-risk category
Classification
Response
Supply chain risk
To ensure supply continuity and mitigate risks related to product origin while meeting required standards, An Cuong established relationships with multiple suppliers across different geographic regions. The Company also built stable partnerships with reliable suppliers, implemented a system to control the origin of raw materials, and adhered to environmental standards and consumer health and safety requirements for industrial wood production. To meet international sustainability standards, An Cuong invested in waste treatment systems and carbon emission control during production. The Company was among the first wood manufacturers in Vietnam to conduct greenhouse gas emission inventories in accordance with ISO 14064-1:2018 standards, certified by third party. Our products have achieved multiple green, clean, and consumer health-friendly certifications, meeting high standards in various export markets. An Cuong’s products received certifications such as Green Label (Singapore) and UL GreenGuard (United States), turning this risk into a competitive advantage in the market. An Cuong has made significant investments in security solutions to safeguard information and intellectual property, minimizing cybersecurity risks. The Company utilized video surveillance systems, installed sensors, and deployed automated fire alarm systems to detect early signs of fire or explosion. Furthermore, the Company employed technologies such as QR codes and laser scanning, and actively communicated with customers on methods to distinguish counterfeit products.
Tax risk
Although Company consistently adhered to tax regulations, certain the discrepancies emerged in the interpretation and accounting practices of internal specialized team concerning guidance from tax authorities. Additionally, the Company lacked the capacity to thoroughly review and evaluate tax-related processes of our business partners. While the likelihood of tax-related issues was assessed as low, the potential impact and consequences of such risks, if they occur, were significant. As a result, tax risk was categorized as high-risk.
Environmental risk
Information Security risk
The information security processes were reviewed and developed to enhance data safety while protecting the Company's intellectual assets.
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