The Board Audit and Risk Committee Report SUMMARY OF WORK CARRIED OUT DURING THE FINANCIAL YEAR (CONT’D) Internal Audit (Cont’d) (e) Discussed with the Compliance & Risk Department, to provide assurance of the soundness of internal control systems and activities of the REIT and the Manager. (f) Reviewed the effectiveness of the internal audit function through evaluation of its performance and competency, and monitoring the sufficiency of resources and costs, to ensure that it has the required expertise and professionalism to discharge its duties. (g) Reviewed the SORMIC which provided an overview of the state of internal controls prior to the Board’s approval for inclusion in the Annual Report. The BARC was satisfied that the system of risk management and internal control as described in the Statement on Risk Management and Internal Control, was sound and effective, providing reasonable assurance that the structure and operation of controls were appropriate for the REIT’s operations. The BARC also acknowledged that implementation measures were continuously taken to strengthen the system of risk management and internal control so as to safeguard the interests of stakeholders including shareholders’ investments, and the REIT’s assets. Risk Management and Internal Control (a) Reviewed quarterly top risk profiles which covers Strategic, Finance, Operational and Compliance Risks and ESG related risks especially with respect to environmental risks, deliberated on the significant threats and opportunities, including status and adequacy of mitigation strategies. (b) Discussed the improvements to the Enterprise Risk Management framework and process to ensure proactive and holistic risk identification, and monitoring of mitigation actions to reduce risk impact to an acceptable level. (c) Evaluated the overall adequacy and effectiveness of internal controls through review of the work performed by both internal and external auditors, other assurance providers and through discussions with Management. (d) Ensures appropriate controls are in place in management of the Fund, that the Manager has a well-defined organisational structure with clear lines of responsibility and a comprehensive reporting system and adequate procedures in financial reporting, risk management, internal control and are in place. Further details in respect of risk management and internal controls are set out on pages 133 to 150 (SORMIC of this Annual Report). Details in respect of the principal risks and uncertainties are set out on pages 37 to 39 under Management Discussion and Analysis. (e) Reviewed and deliberated on four frameworks relating to compliance and internal controls and recommended to the Board the implementation of the frameworks and policies put forward by the Management. Compliance (a) Monitored and reviewed the status and outcomes of the Quarterly Compliance Report which seek to identify gaps in compliance with regard to applicable laws, regulations, codes, standards, policies and procedures and discussed the adequacy of measures to address such gaps or non-compliance. (b) Deliberated on the results of compliance cases and directed Management to implement and/or enhance controls to prevent a recurrence, including conducting education programmes to increase awareness. 118 AL-SALĀM REIT ANNUAL REPORT 2024
RkJQdWJsaXNoZXIy NDgzMzc=