AL-SALAM REIT ANNUAL REPORT 2017

98 AL-SALĀM REIT ANNUAL REPORT 2017 • Reviewing and adopting a strategic plan for the Fund The strategic and business plan for the period 2018 – 2022 was tabled, discussed and approved by the Board at its meeting on 20 November 2017. Additionally, on an ongoing basis as need arises, the Board will assess whether strategic consideration being proposed at Board meetings during the year are in line with the objectives and broad outline of the adopted strategic plans. The Board will ensure that the strategic plan supports long-term value creation and includes strategies on economic, environmental and social considerations underpinning sustainability. • Overseeing the conduct and overall management of the Manager and the business of Al-Salām REIT The Board is responsible to oversee, supervise and review the Fund’s annual budget, operational and financial performance on a periodic basis against the budget. At Board meetings, all operational matters will be discussed and appropriate consultation will be sought if necessary. Where and when available, the performance of the Fund will be benchmarked and compared against the performance of its competitors. • Identifying principal risks and ensuring the implementation of appropriate internal controls andmitigationmeasures The Board will set the risk appetite within which the Board expects the Manager to operate and ensure there in an appropriate risk management framework to identify, analyse, evaluate, manage and monitor significant financial and non-financial risks. The Risk Management Report will be tabled on a periodic basis in the Board meeting to review the Fund’s risks. • Succession planning The Board will deliberate on the latest plans and actions taken in respect of the succession planning to ensure that all candidates appointed to the Board and senior management positions are of sufficient calibre. • Effective communication with stakeholders The Board will ensure that there is an effective communication with stakeholders. The Manager has introduced many activities with regards to engagement and communication with investors to ensure that they are well informed about the Fund affairs and developments. Details of investors’ activities are disclosed on page 46 of this Annual Report. • Reviewing the adequacy and the integrity of the management information and internal controls system of the Fund The Board’s function as regard to fulfilling these responsibilities effectively are supported and reinforced through the various Committees established at both the Board and Manager’s level. The active functioning of these Committees through their regular meetings and discussions would provide a strong check and balance and reasonable assurance on the adequacy of the Fund’s internal controls. CORPORATE GOVERNANCE STATEMENT - CONT’D