All entities organize and identify the core risks in their business segments based on professional analysis, internal control system building and evaluation, and risk management.

The Company has established a risk appetite and early liquidity risk warning system, and has also determined relevant early warning indicators and thresholds for monitoring and issuing early warnings.

Based on the results of this risk assessment, the Company's relevant risk management departments are organized to formulate countermeasures against the top 10 material risks, develop material risk response plans, and regularly track the implementation of countermeasures.

The operation of risk preference and early liquidity risk warning indicators are monitored on a quarterly basis to facilitate the prompt issuance of early warnings and the taking of countermeasures.

Hierarchical risk management: Company-level risks are managed by the functional departments of the Company's headquarter. These also guide the risk response of regional branches, business units, and professional subsidiaries. Risks at the regional branch, business unit, and professional company levels are managed by each regional branch, business unit, and professional subsidiaries, and these also guide urban branches and other business units in terms of taking countermeasures.

The implementation of countermeasures taken against the Company's top 10 material risks is regularly tracked. The operation of risk appetite and early liquidity risk warning indicators is monitored and reported on a quarterly basis.

A material risk assessment report is formulated and submitted on an annual basis.