AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 94 The Manager’s Risk Management And Internal Control System Theperiodicmeetingsof theBoard, BoardCommittees andmanagement are themainplatformbywhich theManager’sperformance and conduct are monitored. The day-to-day operations of the business are entrusted to the CEO and the management teams. The CEO continuously communicates the Board’s expectations and directions to the management at the management meetings where all risks relating to strategy, operational and inancial are discussed and dealt with action plans. The Board is responsible for setting the business direction and strategies as well as overseeing the conduct of the Manager’s operations through its Board Committees and management reporting mechanisms. Through these mechanisms, the Board is informed of all major issues pertaining to risks, governance, internal controls and compliance with regulatory requirements. Risk Management Framework Approach: Risk Analysis Methods And Risk Appetite The Manager adopts ERM practices that enable it to continuously identify, assess, treat and manage risks that afect Al-Salām REIT in achieving its objectives within deined risk parameters in a timely and efective manner. All identiied risks are recorded in a risk register to facilitate systematic review and monitoring. The ERM practices are embedded into key activities and business processes, enabling proper risk management at the operation level of each property as well as the fund level. Risks identiied shall be systematically evaluated with proper mitigating action plans developed to manage the risks to an acceptable level and monitored on a continuous basis. The approach is summarised as below: RISK ASSESSMENT IDENTIFY RISKS ANALYSE RISKS EVALUATE RISKS MONITOR & REVIEW COMMUNICATE & CONSULT ESTABLISH THE CONTEXT TREAT RISKS