PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT'D) Risk Management and Internal Controls The Board is ultimately accountable for the REIT’s risk management and internal control systems. The BARC is responsible for monitoring the effectiveness of these systems and ensuring that risks are adequately identified, assessed, and managed. Risk oversight is an integral part of BARC and Board deliberations. The REIT’s key risk areas are reviewed quarterly at BARC meetings, including the effectiveness of risk mitigation strategies. The Enterprise Risk Management Committee (“ERMC”) supports the BARC in operationalising the risk management framework and tracking mitigation progress. A summary of principal risks and their respective mitigations is disclosed in the Management Discussion and Analysis (MD&A) section on pages 37 to 39 of the Annual Report. The BARC also reviews the adequacy of internal controls, guided by regular internal audit reports and Management updates. These reviews ensure that corrective measures are implemented timely, and control enhancements are integrated where needed. The BARC is satisfied that the Group’s risk management and internal control systems are effective and that the Committee has exercised appropriate vigilance in monitoring the integrity of financial reporting processes. PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS Stakeholders Engagement The Board seeks to engage with all stakeholders to maintain a mutual understanding of objectives between them and the Company and to manage their expectations. Relations with shareholders and potential investors are managed principally by the Executive Directors. The REIT’s business model also relies on developing and maintaining strong relationships with the REIT’s unitholders, the Managers shareholders, employees, third party service providers, contractors, suppliers and regulatory authorities. The Board is conscious of its responsibility towards all stakeholders and believes this is an important consideration for the long-term growth of the business. Stakeholder engagement and feedback is taken seriously throughout the company. As such the Annual General meeting functions as the main platform for all stakeholders to interact and communicate effectively with respect to financial and operation performance, strategic direction of the REIT, and long-term strategies. The AGM notice was dispatched to shareholders not less than twenty-eight (28) days before the AGM. Shareholders were given ample time to consider the resolutions that will be discussed at the AGM. Open communication is made with all the Group companies and employees. The Manager places considerable value on open communication and the involvement of employees and keeps them informed on matters affecting them as employees and on the various factors affecting the performance of the REIT and the Manager. This is achieved through formal and informal meetings, information available on the Company’s website, and annual and semi-annual town halls held a fixed intervals. Corporate Governance Overview Statement 112 AL-SALĀM REIT ANNUAL REPORT 2024
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