AL-SALAM REIT ANNUAL REPORT 2019

Statement On Risk Management & Internal Control 95 ANNUAL REPORT 2019 AL-SALĀM REIT • These policies will be achieved via:- • Periodic reporting to the Board on risk management activities and keep the Board apprised and advised of all aspects of ERM and significant individual risks and risk trends; • Provision of adequate and suitable resources, including tool(s) and manpower to ensure the ERM framework and system are operating effectively; • Provision of adequate education and communication to ensure staff comprehend the requirements, benefits, and their role and responsibilities for risk management; and • Maintaining documented risk information (via risk registers and risk action plans) and procedures for the control of risks. • Organisational Structure and Assigned Roles and Responsibilities. RISK MANAGEMENT STRUCTURE The Risk Management Structure is designed to ensure effective communication, consultation and education in risk management are necessary to achieve a successful integration of the risk processes into the business and to provide provide reports, which may be conveyed in full, to the Audit Committee, as part of the half-yearly Risk Report. The Manager’s ERM Risk Reporting Structure BOARD OF DIRECTORS EXCO RISK MANAGEMENT COMMITEE INTERNAL AUDIT Corporate Planning Acquisitions Divestment FINANCE Accounts Corporate Finance CORPORATE SERVICE HR & Admin Legal COMPLIANCE Risk Management Compliance Sustainability Internal Audit OPERATION Monitoring of Properties Assets Management INSURANCE Claims Policy Renewals BUSINESS DEVELOPMENT & INVESTOR RELATIONS NON-MANAGEMENT / SUPPORT STAFF