AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 93 The Executive Roles And Responsibilities Of The Board, Risk Management Committee, Risk Owner And Internal Audit The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control to safeguard the Unitholders’ interests and the Fund’s assets, as well as to discharge its responsibility in identifying principal risks and ensuring the implementation of an appropriate risk management and internal control system to manage those risks in accordance with Principle B – Efective Audit and Risk Management of the MCCG 2017. Speciic roles and responsibilities for risk management are summarised as follows:- Roles BOARD OF DIRECTORS EXECUTIVE COMMITTEE (EXCO) RISK MANAGEMENT COMMITTEE RISK MANAGEMENT DEPARTMENT RISK OWNERS RISK CO-OWNERS STAFF INTERNAL AUDIT Principal Responsibilities For ERM 1. Adopt the ERM Policy; 2. Articulate and provide direction on risk appetite, organisational control environment and risk culture; 3. Final decision on risk parameters, risk appetite, risk profiles, risk treatment options, and risk action plans; 4. Assess and keep abreast with key risk indicators; and 5. Monitor the overall ERM framework’s performance and implementation e€ectiveness. 1. Provide guidance and advice on appropriateness of risk treatment option selected and risk action plans development; 2. Articulate and challenge risk ratings, controle€ectiveness, risktreatment options and risk action plans identified byrisk owners; and 3. Provide an independent viewon specific risk and control issues, the state of internal controls, trends and events. 1. Assist the Board in establishing and maintaining e€ective policies and guidelines to ensure proper management of risks to which the company/Fund is exposed to and to take appropriate and timely action to manage such risks; 2. Reviewand endorse the risk parameters, risk appetite, risk profiles, risk treatment options, risk action plans and key risk indicators; 3. Communicate requirements of the ERM Policy to sta€ and ensure continuous enhancement of ERM. 4. Formulate and implement ERMmechanism to accomplish requirements of the ERM policy; 5. Discuss, rank and debate risk ratings, control e€ectiveness, risk treatment and action plans identified by Risk Owner; and 6. Ensure that the ERM reports prepared are submitted to Board of Directors in a timelymanner, and specialrisk report / flash reports are submitted in the event of any risk(s) that required urgent attention. 1. Continuously communicate, evaluate and improve the ERM Policy and ERMmechanism; 2. Facilitate the risk assessment, implementation of risk action plan and key risk indicators process; 3. Prepare risk parameters, risk appetite, monitoring of risk action plans and provide independent reviewon key risk indicators; 4. Provide independent input on risk assessment (risk types and risk ratings), and action plans comprehensiveness; 5. Conduct risk identification, evaluation and review of risk treatment process on a periodic basis to ensure the Group’s risk manage- ment e€ectiveness; 6. Prepare and report to the RiskManagement Committee in a timelymanner, and ensure special risk report / flash report is prepared in the event of any risk(s) that required urgent attention; and 7. Lead the ERM educational programmes, and continuous sharing insights into risk and market trends with Risk Owner. 1. Identification and assessment of risks, implementation and monitoring of risk action plans and key risk indicators; 2. Prepare and report to the Risk O•cer on a timely manner and timely preparation of flash reports in the event of any risk(s) that required urgent attention; and 3. Maintain highest alert on both internal and external activities or circumstances that may have adverse risk impacts and consequences to DRMSB. 1. Provide support to Risk Owner on key risks identified and to assist in the implementation of risk action plans and key risk indicators thereof; and 2. Engage and discusswith Risk Owner on internal and external activities or circumstances that may give rise to new risks or changes on rating or control e€ectiveness of existing risks. 1. Provide assistance to Risk Owner and / or Risk Co-owners on key risks identified and to support the implementation of risk action plans and key risk indicators; and 2. Engage and discusswith Risk Owner and / or Risk Co-owners on internaland externalactivities or circumstances that maygive rise to new risks or changes on rating or control e€ectiveness of existing risks. 1. Assist the Risk Management Committee and the Audit Committee in reviewing the e€ectiveness of ERM and internal controls and providing an independent viewon specific risks and control issues, the state of internal controls, trends and events.