CORPORATE GOVERNANCE 110 Al-`Aqar Healthcare REIT | Annual Report 2024 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL CORPORATE GOVERNANCE FRAMEWORK BOARD OF DIRECTORS BOARD AUDIT AND RISK COMMITTEE (BARC) BOARD INVESTMENT COMMITTEE (BIC) BOARD SUSTAINABILITY COMMITTEE CHIEF EXECUTIVE OFFICER (CEO) Enterprise Risk Management Committee (ERMC) Enterprise Risk Management Framework External and Internal Auditor GOVERNANCE FRAMEWORK CONTENT BUSINESS LINE MANAGEMENT/RISK OWNERS Strategic Risks Market Risks Partnership Risks Financial Risks Operational Risks Compliance / Legal Risks ESG Risks The governance structure dictates the segregation of the roles and responsibilities of the Board, BARC, the ERMC and other key personnel which are summarised as below: Responsibilities • Provide independent assurance design and effectiveness on an organisation’s risk management, governance and internal control processes are operating effectively. • Assurance about design and effectiveness Process Perform risk-based internal audit and independent reporting to Management and the BARC INTERNAL AUDIT Responsibilities Governing overall risk oversight responsibility including defining the appropriate governance structure and risk appetite. Process • Articulates and provides direction on risk appetite, organisational control environment and risk culture. • Provide an independent view on specific risk and control issues, the state of internal controls, trends and events. THE BOARD AND BOARD COMMITEES The Governance Structure for the Risk Management and Internal Control is depicted below:
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