AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 70 Standard Operating Procedures The Manager has in place standard operating procedures to govern the day-to-day processes to implement the best management practices for the REIT. Enterprise-Wide Risk Management (ERM) On a quarterly basis, the Manager regularly reviews the risks that are signiicant to the operations and takes the necessary actions to mitigate the risks as part of the ERM exercise. In Quarter 4 of 2018, the Manager conducted a validation exercise on the controls for 5 High impact risks identiied that were relevant to the Financial, Operational and Strategic perspectives. Whistleblowing Management Any stakeholders to the Manager may raise their concerns for any inappropriate matters through the Manager’s existing whistleblowing channel. To date, there were no whistleblowing incidents reported through the available channels to the Manager. Other Committees Apart from the BOD and SSC, the Manager has put in various committees to ensure continuous governance in the overall operations such as: Governance Committee Audit Committee Executive Committee Remuneration & Nomination Committee Risk Management Committee Objectives Review issues on accounting policies and presentation of external inancial reporting and ensure an objective and professional relationship is maintained with the appointed auditors. Oversees the day-to-day activities of the Board on behalf of the Board and provide the necessary recommendations in relation to the REIT, reviewmanagement reports and forward summary reports to all Board members. Ensure that remuneration arrangements support the strategic aims of a business and enable the recruitment, motivation and retention of senior executives while also complying with the requirements of regulation. Ensure that risk management is part of the Manager’s day-to-day operations and ensure consistency of operational procedures and practices within the organisation to ensure efective risk management. The relevant committees discuss matters of the REIT on a periodic basis in relation to the objectives of the establishment of these committees. Ultimately, updates relevant to the REIT will be reviewed by the Executive Committee and reported to Board on a timely basis.