RISK MANAGEMENT (CONT’D) Board Audit and Risk Committee (BARC) (Cont’d) The main responsibility of the BARC are: Statement on Risk Management and Internal Control • Approves and reviews the Enterprise Risk Management (ERM) framework. • Ensures risk governance is robust, independent, and embedded into business operations and decision-making. • Monitors the effectiveness of the risk culture and promotes accountability at all levels. • Reviews and recommends the risk appetite statement (RAS) to the full Board. • Ensures that risk-taking activities are within agreed thresholds and aligned with the organization’s strategic objectives. • Reviews risk reports, dashboards, and Key Risk Indicators (KRIs) provided by management or the risk function. • Ensures timely identification and escalation of material risks, breaches, or regulatory issues. • Provides direction to and assesses the independence and effectiveness of the Head of Compliance & Risk or equivalent. • Ensures that the Risk Management function is adequately resourced and supported. • Reviews and monitors key strategic, financial, operational, compliance, ESG, and reputational risks. • Advises on emerging risks and macroeconomic or geopolitical trends impacting the business. • Coordinates with the Investment Committee, and Sustainability Committee to ensure risk oversight is integrated and comprehensive. • Avoids duplication of efforts and ensures that financial and non-financial risks are managed holistically. • Ensures effective and timely implementation of mitigation actions for high or critical risks. • Verifies that internal controls and risk responses are adequate and effective. • Reviews and monitors the organization’s crisis management, disaster recovery, and business continuity plans. • Ensures preparedness and resilience in the face of disruptive events. • Monitors compliance with applicable laws, regulations, and risk-related reporting requirements (e.g., SC, Bursa, ISSB, GRI). • Ensures transparent and accurate risk disclosures in annual and sustainability reports. 1. Oversight of Risk Governance Framework 2. Approval of Risk Appetite & Strategy 3. Strategic Risk Oversight 4. Monitoring Risk Exposures 5. Oversight of Risk Mitigation Plans 6. Interface with Other Committees 7. Oversight of Risk Management Function 8. Crisis & Business Continuity Oversight 9. Regulatory Compliance & Disclosure 136 AL-SALĀM REIT ANNUAL REPORT 2024
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