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【2020 Application Example】 The Lawsnote compliance system uses AI technology to automate the compliance risk assessment (CRA) process and improve the compliance efficiency of companies

Trends in financial regulation

As the world pays greater attention to regulatory supervision, various fields are facing increasing compliance costs. If we were to ask what was the fastest growing field in 2020? I believe many people will think it is regulation!

The trend of strict supervision has been the most severe in the financial industry. Supervisory agencies In Taiwan, including the Financial Supervisory Commission, have imposed growingly strict supervision requirements on the financial industry, as well as heavier fines. In response to these supervisory measures, the financial industry gradually implemented new internal control and internal audit systems for compliance a few years ago, such as the assessment of regulatory risks, business units appointing compliance managers as the first line of defense, and compliance self-assessment system.

Current manual compliance process of compliance personnel

However, there is a plethora of financial-related laws and regulations, and business units have a large number of complex business manuals. Therefore, many compliance personnel of financial institutions must spend a lot of time on tedious and highly repetitive comparisons of internal and external regulations, in order to help companies avoid risks or fines due to not proposing response measures in their internal regulations when laws are amended.

Compliance staff spent a lot of time processing Changes in laws

▲Compliance personnel spend a lot of time dealing with regulatory changes

Lawsnote Compliance System Solution

As Taiwan's leading legal technology solutions provider, Lawsnote received many requests from corporate customers for a compliance system, and began to look into solutions for applying AI to compliance systems. It thus developed the Lawsnote RegTech compliance system for compliance personnel to automate parts of their work process, reducing the tedious and repetitive work of compliance personnel.

Lawsnote will adjust legal changes and internal regulations Automation

▲Lawsnote automates regulatory changes and internal regulatory adjustments

A Regulatory database, search, and notification of regulatory changes

As the basis of the RegTech system, the compliance process is triggered by "regulations", so it is necessary to have a "complete" and "real-time" regulatory database and regulatory update mechanism for specific fields.

However, regulations are not limited to "laws" enacted by the Legislative Yuan, but also include "administrative rules" and "legal orders" enacted by administrative agencies authorized by law, as well as "administrative interpretations" used to interpret regulations. These are all considered regulations that the compliance system must comply with.

There is currently no unified data source for these regulatory data. Except for the Laws & Regulations Database of the Republic of China (Taiwan), many regulations are scattered on independent webpages for regulations on the websites of different agencies, organizations, or associations, making the cost of collecting complete regulations very high.

Since laws and regulations will be amended, new administrative letters and interpretations will be issued or old ones abolished, updating regulatory changes is also a big problem. Even if complete laws and regulations are collected once, failure to continuously monitor changes in laws, regulations, and administrative letters and interpretations will also create a gap in compliance.

As a professional legal search engine, Lawsnote has a complete database of regulations and interpretations, and can send notices of regulatory changes required by various fields in response to the needs of compliance systems.

B1. Internal regulations database and search

Internal management by companies through regulations are called "internal regulations." General types of internal regulations include company internal regulations, standard operating procedures (SOPs), and business instruction manuals. Depending on the intensity of industry-specific supervision, the number and density of company internal regulations will vary depending on the industry.

In industries with high supervisory density, the number of internal regulations sometimes reaches thousands or even tens of thousands. With such a huge number of internal regulations, paper or simple filing systems can no longer meet the internal needs of enterprises. The process of searching for and complying with internal regulations might require a significant amount of time and personnel costs if an internal regulations database and search engine are not establish.

Lawsnote has Taiwan's most powerful legal information search engine, patent search technology, and uses AI to optimize its sorting algorithm. It can establish an "internal regulations database"for internal data, such as company internal regulations, SOPs, and instruction manuals, and applies search engine technology to the internal regulations database, achieving a fast, complete, and easy-to-use internal regulations database and search engine.

B2. <Regulations – Internal Regulations> Article-to-Article Linking Mechanism

When regulations are revised, the company's internal regulations must also be inspected and adjusted accordingly.

The company's internal regulation inspection procedures may be initiated by compliance personnel based on regulatory amendments, or may be initiated by the compliance officer of the business unit (the first line of defense), and then reviewed by compliance personnel (the second line of defense). However, regardless of which unit initiates it, the difficulty lies in finding the article of internal regulations that correspond to the amended article of the law to determine whether amendments are necessary.

Due to the large number of internal regulations, complicated terms, and the different forms of business involved, if internal regulations must be reviewed every time laws and regulations are revised, it will consume a huge amount of time. Therefore, compliance personnel usually rely heavily on experience and aim to minimize risk within limited time.

Moreover, due to the way internal regulations are written, often using different methods to significantly rewrite and break down laws and regulations, making comparison very difficult for programs. If the existing program is used to compare internal and external regulations, many internal regulations cannot be effectively determined.

After research and testing, Lawsnote designed 3 AI algorithms and 4 rule-base algorithms for cross-comparison, which can establish article-to-article links between thousands of regulations and company internal regulations, helping compliance personnel to immediately determine the necessity of revisions to internal regulations when regulations are revised, significantly saving review time and reducing compliance and internal control risks.

C. Internal control and internal audit self-assessment process for compliance

In order to ensure that the compliance officer of business units properly carry out the compliance process, some companies will implement mechanisms such as compliance self-assessment and compliance education, and require the compliance officer of business units to conduct self-assessment of internal control and internal audit processes and review existing risks.

Compliance personnel or auditors must summarize self-assessment results, or prepare a risk matrix to monitor compliance risks and track vulnerabilities.

The Lawsnote RegTech compliance system supports expanded workflow solutions, which can extend the workflow to the compliance self-assessment process, customize the integration of the current system and compliance system, and merge the organizational structure and SSO permission control mechanism to create a one-stop compliance system.

Three core modules of Lawsnote legal compliance system Group

▲Three core modules of the Lawsnote compliance system

Incorporates foreign regulations and is the number one compliance tool for companies

Lawsnote will continue to optimize regulatory text parsing and identification technology. In addition, we will also develop other legal technology application tools and become the number one compliance tool for enterprises with all-inclusive services. In addition to domestic regulations, Lawsnote will also incorporate foreign regulations into the system, so that multinational companies in Taiwan can access information on domestic and foreign regulations.

Lawsnote has always focused on AI applications, data mining, algorithm design, search engines, and workflow optimization in the legal field, and is committed to saving the time of legal professionals through technology.

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【解決方案】搭上綠能商機 華鉬實業打造全釩液流電池儲能系統設備 長效儲能的最佳選擇
Taking advantage of green energy business opportunities, Hua Molybdenum Industry creates all-vanadium redox flow battery energy storage system equipment, the best choice for long-term energy storage

Green energy is the future trend and will surely lead to huge business opportunities in the future Wind power has been one of the green energy sources that have attracted global attention in recent years It will become an important force in my country's renewable energy and help Taiwan's power generation reach the goal of 20 by 2025 to improve Taiwan's energy independence As the number and power of domestic wind turbines wind turbines increases year by year, it is particularly important to ensure that the power storage equipment achieves safe, long-term performance, is not easily attenuated during charging and discharging, and is sustainable, low-carbon and environmentally friendly At the same time, the wind turbine equipment itself Health inspection, maintenance and repair have also become the focus of wind farm operators In order to meet the needs of wind farm customers, the green energy business unit of Hua Mo Industry has launched long-lasting energy storage all-vanadium redox flow battery electrolyte and wind turbine AI predictive operation and maintenance, providing 100 safety, long-term efficiency and reducing customer initial manufacturing costs cost-effective power energy storage equipment, and through AI predictive operation and maintenance services to help customers reduce power generation costs by 10 and save up to 30 in maintenance and warranty costs Hua Molybdenum Industry was established in 1998 The industry started by refining vanadium, molybdenum and rare metal elements and other products, and used them in high-end steel, professional chemicals and specialty chemicals industries, and vanadium is more like a steel-making Vitamins can increase the effectiveness of steelmaking Among them, vanadium and molybdenum related products are one of the company's main projects The company sees that the all-vanadium redox flow battery, which is 100 vanadium-based, will be a very promising mainstream green energy technology in terms of long-term energy storage in the future, and before 2010 The government has actively invited legal entities such as the Industrial Research Institute to conduct research on related component materials in solid-state batteries and all-vanadium batteries In addition, the Ministry of Economic Affairs expects renewable energy to account for 20 of power generation in 2025 and reach 15GW Based on the above Considering this, Hua Molybdenum Industry decided to devote all its efforts to research and invest in the technological development of self-developed all-vanadium redox flow battery electrolyte in 2017, in order to accelerate the compliance rate of renewable energy in 2025 Hua Molybdenum pointed out that "renewable energy power is relatively unstable, and Taiwan itself lacks lithium resources In lithium battery manufacturing, almost 80-90 of battery cells must rely on foreign procurement, and there is a lack of 100 domestic self-sufficient energy storage Resources and technology "Similarly, how does Taiwan overcome the problem of having no natural vanadium resources To this end, Hua Molybdenum Industry uses original technology to use waste catalysts from petrochemical industries such as CNPC refineries or Taishuo petrochemical processes Up to 10 of the vanadium ion content can be used to extract high-value vanadium resources, thereby producing Taiwan's 100 self-made all-vanadium redox flow battery electrolyte without being affected by resources, effectively achieving resource recycling Since 2017, Hua Molybdenum Industrial has successfully created all-vanadium flow electrolyte technology, and has successfully passed product verification by the Industrial Research Institute, the Nuclear Research Institute and many international manufacturers Taiwan’s power storage energy target is to reach 15GW in 2025 Its power distribution includes 500MW in Taipower’s automatic frequency regulation system, 500MW in E-dReg and 500MW in existing or newly built solar power plants For example, electricity consumption is mainly between 4 pm and 10 pm, which is the peak period for people's daily electricity consumption For this reason, the Energy Administration specifically requires Taipower to strengthen the upgrade of energy storage equipment, which has also driven the market's interest in all-vanadium redox flow batteries Energy storage system equipment is in high demand In addition, Taiwan's current total power reserve construction and contribution has not yet reached 100MW, and the gap from the 2025 target of 15GW of power storage is still more than 15 times Using all-vanadium redox flow batteries to successfully create 100 safe, low-carbon, environmentally friendly and long-lasting energy storage system equipment Compared with the short-term power storage of lithium batteries, the biggest advantage of all-vanadium redox flow batteries is that it is globally recognized as a long-term power reserve It can store energy for a long time up to 12 hours, which means that if it is charged for 12 hours, It can release power for 12 hours Compared with the electricity measurement method of general energy storage systems, which is daily electricity consumption power in kilowatts x time in hours, for all-vanadium redox flow batteries, power and hours are different Special design, the power is also called a stack, which is composed of four materials metal, polymer mold, carbon felt and graphite plate, and the power consumption time is calculated based on the amount of electrolyte in cubes Therefore, when the power electric push x the amount of electrolyte the daily electricity consumption of our all-vanadium redox flow battery for energy storage The product features of the all-vanadium redox flow battery energy storage system equipment include four major features safety, long-term performance, not easy to decay during charging and discharging, and sustainable, low-carbon and environmentally friendly The quality of the all-vanadium flow battery is 100 safe Since the electric energy is stored in the vanadium-containing electrolyte, it can avoid any flammable accidents caused by a fully charged energy storage system In terms of battery life, compared to the short battery life of lithium batteries, all-vanadium redox flow batteries can have a battery life of more than 20-25 years through changes in price Regarding the charge and discharge performance of energy storage, unlike lithium batteries which have a certain number of charge and discharge times 5000-600 times, there is no limit to the number of charge and discharge times of all-vanadium redox flow batteries Regarding zero carbon emissions, which is highly valued globally, unlike lithium batteries which have recycling issues, the electrolyte of the all-vanadium redox flow battery can be used permanently The material components of the stack are environmentally friendly and fully recyclable to create a truly sustainable and low-cost Carbon-friendly energy storage system Onshore wind turbine AI prediction smart operation and maintenance allows customers to reduce power generation costs by 10 and save maintenance and warranty costs by up to 30 Hua Molybdenum Industry not only improves the long-term power storage efficiency of renewable energy customers through all-vanadium redox flow battery energy storage system equipment and helps customers reduce initial purchase costs, but also uses AI smart operation and maintenance empirical calculations for offshore and onshore wind turbines Field demonstrations were drawn on Taipower's onshore wind farm, and we actively accumulated our own technical experience and energy in AI predictive operation and maintenance With the support of the AI HUB project of the Industrial Bureau of the Ministry of Economic Affairs, the cooperation site will focus on the Phase I wind farm of Taipower Corporation and provide smart operation data of wind turbines for more than 6 months for analysis The AI predictive operation and maintenance system for onshore wind turbines uses machine learning The main technology provider comes from ONYX Insight, a subsidiary of British Petroleum BP The company uses AI Hub analysis software technology to analyze the wind turbines faced by Taipower Pain point analysis, including power generation loss of road-based wind turbines and damage prediction of key components of land-based wind turbines such as gearboxes, pitch bearings under abnormal vibration three-dimensional vibration frequency or abnormal temperature, etc output Through this implementation, it can effectively help Taipower reduce power generation costs by 10, increase asset value by 12, and save up to 30 in maintenance and warranty costs In the past three years, ONYX Insight has successfully predicted and operated more than 20,000 offshore or onshore wind turbines around the world, accumulating extremely high AI model accuracy It is believed that the international partnership established with ONYX Insight will effectively guide and accelerate the green energy division of Hua Molybdenum Industry in its goal and layout to become an independent technology service provider for wind turbine AI predictive operation and maintenance Works with partner ONYX insight to provide customers with an AI predictive operation and maintenance system, including wind turbine power generation loss and damage prediction of key wind turbine components Building a solid foundation for domestic wind turbine operation and maintenance, using Taiwan as a base to expand to Southeast Asian wind farms The market output value of offshore wind turbine AI predictive operation and maintenance in Taiwan will exceed NT30 billion in the future, and the energy storage market has an output value of more than 100 billion US dollars globally In the future company vision, Hua Molybdenum Industrial hopes to become An independent technical service provider for vanadium flow battery electrolyte and wind turbine AI predictive operation and maintenance The long-term goal is to establish a local supply chain of vanadium flow battery electrolytes around the world by accumulating abundant technology and performance capital to supply industry needs nearby 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

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CCTV Intelligent Video Search System

Search for a specific person, find someone with a suitcase entering the factory in Gao'an area Color features of the person and the object confirmed, person in blue and black top, suitcase in black color, throughCCTV the intelligent video search system, by setting object and color retrieval conditions, it can successfully locate three video clips containing the target subject This greatly aids operational staff in finding the target items, and through this system, search speed can far surpass manual effort6fold Pain Points The CSE-Kaohsiung Plant is densely equippedCCTVto monitor every corner of the plant area, but when an incidenthappens, it's impossible within a limited time throughCCTVvideo playback to find the incident, the implications and risks behind this are self-evident Many areas that are usually unmanned can easily become security blind spots Thus, how to monitor a vast plant area more intelligently and effectively is one of the crucial aspects of building a smart plant for the semiconductor industry The AES Plant in Kaohsiung covers a vast area, with many important sites requiring monitoring of personnel movements to ensure corporate secrets and employee safety 1 Automated production lines and warehouses In semiconductor enterprises’ automated production lines and warehouses, oftenAGV(Automated Guided VehicleAGVs automated guided vehicles travel at high speeds if plant personnel inadvertently enterAGVthe moving area and cannot issue a warning to the person, then the regrettable accidents that occur will be too late to reverse 2 Material and product storage areas Materials used in semiconductor-related processes are costly if areas storing materials or products are breached, there is a risk of loss of high-value materialsproducts 3 High-security areas Trade secrets relate to the core technological competitiveness of semiconductor-related enterprises if someone breaches the high-security areas, there is a risk of corporate secrets being leaked The safety of trade secrets has always been one of the most critical issues for semiconductor enterprises 4 Loading docks At AESLButthe dock area often has loading vehicles coming and going if someone intrudes into the dock area, there is a risk of vehicle collisions and accidents Additionally, goods awaiting shipment at the dock area could be stolen or potentially damaged from collisions, thus causing significant reputation and financial losses for the company, further leading to production and shipping inconvenience When an abnormal event occurs, how to quickly search for the relevant key footage from massive data Many important locations within the AES Kaohsiung Plant need to be equippedCCTVfor safety checks, butCCTVWith thousands to tens of thousands of cameras, manually searching through footage for an event requires laborious frame-by-frame review which is time-consuming and inefficient In light of advancements in computer vision, it's beneficial to utilizeAIto replace manual playback and searching Problem Scenario Object Detection The data source for object detection comprises two parts Open-source datasetsOIDv4and AES Kaohsiung PlantCCTVImage files For these files, search for usable data, specificallyOIDv4image files For these files, extract the defined nine major categories of objects for training data among them, two object categories, knives and gasoline barrels, were not found inOIDv4found usable data for knives and gasoline barrels, while the remaining seven categories of objects are available fromOIDv4useful training data found for the remaining seven categories of objects, all marked Regarding the Kaohsiung PlantCCTVimage files, select some frames Frame of the footage, and manually annotate the objects to be_detected for training and testing data Nine Major Objects Color Recognition The data source for color recognition is divided into two partsInternet image screenshots, and Kaohsiung PlantCCTVimage files Currently, no publicly available open-source datasets specifically for color recognition applications have been found, so images are collected from the web Search the web for images of the defined nine major object categories, save the images after separating the objects from the background, keeping only the object sections, and mark the images according to color Additionally, for the Kaohsiung PlantCCTVimage files, use the already-markedbounding boxextractCCTVimage files from variousFramesections of objects identified by color, and finally, visually identifiable images are marked according to color Each object category has its specific color definition, depending on the usual colors seen in these objects in real life Dynamic Ignore during Training FromOIDv4during the training of the object detection pilot model, since each image in this dataset is only marked for a single category, but the image may contain other desired detection categories unmarked For such cases, dynamic ignore techniques will be employed during training to avoid confusion Next, use the extracted training data from the Kaohsiung Plant toFine-Tuneenhance the detection rate of the object in specific designated areas Finally, select the model that computes the lowest loss value in the test set during the training process as the main object_detection model Dynamic Ignoring AIHelp You View CCTV The intelligent video search system primarily serves as an assistive system for searching surveillance footage, capable of speeding up the process of finding target events by setting search conditions for objects By simply defining the search conditions, you can quickly produce thumbnails of critical objects and playback for review, shortening the time required for manual case retrieval of the past The search time is quickly6doubled, allowing the front-end security unit to use this platform to strengthen the first line of risk management supervision and take timely preventive measures 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-12-12」

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AI Assists the Red Cross for Smarter Emergency Response

More Preparation Less Loss The Taiwan Food Bank Association, a non-profit organization, collects donations daily from wholesalers, retailers, manufacturers, and even kind-hearted individuals across Taiwan They also rescue consumable materials that are about to be discarded, properly allocate and deliver to households in need, aiding local underprivileged populations When natural disasters such as earthquakes, landslides, mudslides, typhoons, floods, and droughts occur in Taiwan, the food bank's resources can be immediately deployed for disaster relief This field verification unit is the Nantou County Red Cross AssociationOne of the food bank locations, hereinafter referred to as the Nantou Red CrossIs responsible for tasks like pre-disaster supplies preparation and disaster relief material distribution, helping the government bear the responsibility of disaster relief and aid In Taiwan, various natural disasters have characteristics of different duration and spatial coverage, wide or narrow With the normalization of extreme weather, the scale and number of disasters are gradually increasing and becoming harder to predict The required amount and type of materials differ by disaster, and they must address the lifestyles of the affected areas, rescue needs, traffic conditions, geographical restrictions, and other factors for varied material allocation, facing numerous challenges Typhoon Kanu severely damaged transportation in Nantou mountain areas Nantou County Red Cross planned the mountainous route Puli gt Fazhi Elementary School gt Qin'ai Village gt Aowanda to deliver supplies Disasters happen repeatedly We need to be prepared at all times Effective disaster preparedness can mitigate the impact, including swift response to material needs in affected areas, aid distribution, and even psychological support, providing added security for life and property of those in disaster zones Lack of Timeliness in Disaster Information To improve the living conditions and address the lack of supplies in remote areas, the Taiwan Food Bank Association has partnered with the Nantou Red Cross and has successively established food bank points in Nantou City, Puli, and Ren'aiLixing, Ruiyan, XinyiWangmei, Tongfu, Shuili, Lugu and Caotun among others9establish food bank locations, providing supplies worth a certain amount per household every month6001000in New Taiwan Dollars However, many challenges still need to be overcome during natural disasters For example, when typhoons, earthquakes, and landslides occur, the information source for disaster relief dispatch systems relies on post-disaster reports The time lag between reporting, response, and execution prevents timely adjustment and distribution of 'disaster relief' supplies based on the needs of affected areas, affecting rescue efficiency due to lack of timely information The 'preparedness' supplies of the Nantou Red Crosssuch as dry food, water, instant noodles, etc,are recorded manually in terms of stock, expiration dates, and distribution,When a disaster occurs, there is a chance that 'preparedness' supplies have expired and cannot become 'disaster relief' supplies It’s also possible that both conditions mentioned above occur simultaneously, leading to a need for more time to reassign 'preparedness' supplies into usable 'disaster relief' materials On the other hand, upon receiving information about shortages in disaster areas, the supplies donated by the public often grossly differ from the actual needs of the disaster zone, leading to an excess of supplies The Process of Material Operations Before and After a Natural Disaster AIAnticipating Natural Disasters Reinforcing the Accuracy of Preparedness Material Dispatch Application API Technology connects to compute the state of the climate, the intensity of disaster rescues, prioritizing the main tasks of the Nantou Red Cross and the needed areas of search and rescue Coordinated with the existing heavy rain and typhoon simulation disaster training of the Nantou Red Cross, a 'Natural Disaster Emergency Preparedness Material Dispatch and Supplement Decision System' is establishedreferred to as the Emergency Preparedness Material System。 In material management, inventory data along with immediate supply data are entered into the Emergency Preparedness Material System for comparison and analysis, helping the Nantou Red Cross quickly recognize materials like cookiesdry food, beverages, frozen food, toilet paper, etc, and determining whether they should be 'preparedness' materials or regularly distributed materials Adding to this, information forecasting understands the potential disaster conditions in remote areas, facilitating food delivery, addressing both front-end food wastage and backend practical needs When a natural disaster occurs, it enables faster response and decision-making, completing material deployment, hence increasing the speed of material operation transition20。 AI Emergency Preparedness Material System Helps Rapidly Adapt Material Distribution Through the field verification of the Nantou Red CrossAIthe system, material management, and related applications are promoted to more emergency response organizations in different areas, while continuously improving the alert functions within the Emergency Preparedness Material System, strengthening the technological foundation for alerts, enhancing prediction accuracySystem immediacy, and optimizing the data collection and analysis process Simultaneously, it can collaborate with government agencies, meteorological departments, or other rescue teams to discuss integrating more data sources, establishing a mechanism to share resources and data promptly, sharing information in real-time, helping more emergency response organizations enhance their disaster response abilities, seizing the golden rescue time 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-12-12」