CORPORATE GOVERNANCE SECTION 4 93 Al-`Aqar Healthcare REIT | Annual Report 2024 Audit findings, recommendations, and Management responses are presented to the BARC for deliberation. Where appropriate, the BARC directs Management to implement remedial actions. To uphold audit effectiveness and independence, the BARC is empowered to: • Meet privately with the Internal Auditor; • Approve and report on internal audit appointments to the Board; • Evaluate the performance of the internal audit function. The BARC was satisfied with PKF’s performance and its ability to effectively discharge its internal audit duties for the financial year under review. Risk Management and Internal Controls The Board is ultimately accountable for the REIT’s risk management and internal control systems. The BARC is responsible for monitoring the effectiveness of these systems and ensuring that risks are adequately identified, assessed, and managed. Risk oversight is an integral part of BARC and Board deliberations. The REIT’s key risk areas are reviewed quarterly at BARC meetings, including the effectiveness of risk mitigation strategies. The Enterprise Risk Management Committee (“ERMC”) supports the BARC in operationalising the risk management framework and tracking mitigation progress. A summary of principal risks and their respective mitigations is disclosed in the Management Discussion and Analysis (MD&A) section on page 29 of the Annual Report. The BARC also reviews the adequacy of internal controls, guided by regular internal audit reports and Management updates. These reviews ensure that corrective measures are implemented timely, and control enhancements are integrated where needed. The BARC is satisfied that the Group’s risk management and internal control systems are effective and that the Committee has exercised appropriate vigilance in monitoring the integrity of financial reporting processes. CORPORATE GOVERNANCE OVERVIEW STATEMENT
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