CORPORATE GOVERNANCE SECTION 4 115 Al-`Aqar Healthcare REIT | Annual Report 2024 ENTERPRISE RISK MANAGEMENT (ERM) FRAMEWORK Risk Assessment: Identification & Analysis Mitigation Action Monitoring Continuous Monitoring Mitigation Action Implementation ERM PROCESS ERM EDUCATION AWARENESS/ SHARING SESSION | CONTINUOUS EDUCATION | COMPETENCY | UPSKILLING GOVERNANCE STUCTURE GOVERNANCE STUCTURE • Vision/Mission Governance & Compliance • Board/ Management Policies • ERM Reporting Structure & Frequency • ERM Roles & Responsibilities • Risk Appetite Parameters • Digitalisation • Strategic Planning • Budgeting • Policy Development Acquisitions/ Investment And Asset Disposals • Performance Management • Building And Asset Management • Integrity • ESG • Business Continuity Management Enterprise Risk Management (ERM) Framework The framework was designed towards a sound system of risk management and internal control which are responsive to changes in the business environment, industrial trends, and the governance eco-system. The objectives of ERM Framework are to ensure: • a common and consistent approach for the management of risks is adopted within JRM • the management of risk contributes to the quality of performance and continuous improvement of JRM businesses, its operations, and delivery of services and products; and • all significant risks are identified, evaluated, managed, and reported in a timely manner. The above objectives will be achieved via:- • Periodic reporting to the BARC/ Board on risk management activities and keep the Board apprised and advised of all aspects of ERM and significant individual risks and risk trends; • Provision of adequate and suitable resources, including tool(s) and manpower to ensure the ERM framework and system are operating effectively; • Provision of adequate education and communication to ensure staff comprehend the requirements, benefits, and their role and responsibilities for risk management; and • Maintaining documented risk information (via risk registers and risk action plans) and procedures for the control of risks. The ERM Framework is communicated, integrated, and cascaded to all levels each plays its role in in managing risks concerning business processes in the areas of Strategic Planning, Budgeting, Policy Development, Acquisitions/ Investment and Asset Disposals, Performance Management, Building and Asset Management, Integrity, ESG and Business Continuity Management. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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