RISK MANAGEMENT (CONT’D) The Enterprise Risk Management Committee (Cont’d) Statement on Risk Management and Internal Control • Recommend and review the organization’s risk appetite statement and tolerance limits. • Ensure risk-taking aligns with the board’s expectations and the entity’s capacity to absorb risk. • Oversee development of risk response strategies, including mitigation plans, controls, and contingency actions. • Monitor the implementation and effectiveness of internal controls and risk treatment plans. • Receive regular risk reports and dashboards from the risk management function. • Track key risk indicators (KRIs) and ensure timely escalation of red flags or breaches. • Ensure periodic updates to the board and audit committee on the risk profile and mitigation efforts. 3. Risk Appetite & Tolerance Setting 4. Risk Mitigation & Control Effectiveness 5. Risk Monitoring & Reporting The ERMC makes periodic reports to both the BARC risk management issues/ mitigation actions undertaken to keep the BARC apprised and advised of all aspects of the enterprise risk management, and significant risks and risk trends. Enterprise Risk Management (ERM) Framework The framework was designed towards a sound system of risk management and internal control which are responsive to changes in the business environment, industrial trends, and the governance eco-system. - Vision/Mission Governance & Compliance - Board/Management Policies - ERM Reporting Structure & Frequency - ERM Roles & Responsibilities - Risk Appetite Parameters - Digitalisation Awareness/ Sharing Session | Continuous Education | Competency | Upskilling - Strategic Planning - Budgeting - Policy Development Acquisitions/ Investment And Asset Disposals - Performance Management - Building And Asset Management - Integrity - ESG - Business Continuity Management GOVERNANCE STUCTURE ERM INTEGRATION ERM EDUCATION ERM PROCESS Mitigation Action Monitoring Risk Assessment: Identification & Analysis Continuous Monitoring Mitigation Action Implementation Enterprise Risk Management Framework 140 AL-SALĀM REIT ANNUAL REPORT 2024
RkJQdWJsaXNoZXIy NDgzMzc=