pg. 203 Corporate Governance Report Integrated Annual Report 2025 The application of the model is shown below: BOARD OF DIRECTORS BOARD SUSTAINABILITY COMMITTEE - ACCOUNTABILITY TO STAKEHOLDER FOR ORGANISATIONAL • Sets strategic direction, approves risk appetite, including ESG, climate, and Shariah thresholds. • Oversees the effectiveness of risk managementand internal control frameworks. • Reviews and challenges significant risks escalated by Management and ERMC. • Ensures Internal Audit’s independence and effectiveness. • Safeguards unitholder interests through transparent governance and disclosures 1ST LINE OF DEFENCE - OPERATIONAL MANAGEMENT (DEPARTMENTS) • Conducts day-to-day monitoring of operational and financial controls across hospitals and healthcare premises. • Tracks tenancy management, rental collection, maintenance activities, and capex progress. • Provides monthly/quarterly reports on performance, risk indicators, ESG metrics, and compliance status. • Performs front-line identification of control gaps (e.g., delays in works, compliance breaches) and initiates corrective measures. • Maintains operational records (such as Sustainable Finance Register, disbursement tracking, climate-related data). • Asset/Property Management • & Leasing • Finance • Strategy, IR • Investment • Sustainability • IT • Legal • Procurement 2ND LINE OF DEFENCE - RISK OVERSIGHT • Provides risk oversight, monitoring, and challenge to Line 1. • Reviews risk assessments, mitigation plans, and emerging risks (including ESG and climate-related risks). • Tracks mitigation progress and escalates significant issues to ERMC and BARC. • Coordinates compliance monitoring and updates on regulatory changes. • Maintains governance documentation policies, SOPs, registers, compliance files). • ERMC • Compliance • Shariah Advisers • Governance 3RD LINE OF DEFENCE - INTERNAL AUDIT / INDEPENDENT ASSURANCE • Conducts risk-based audits covering operational, financial, compliance, IT, ESG, and climate-related areas. • Provides independent and objective effectiveness of internal control and risk-management systems. • Assesses alignment with COSO principles the identifies systemic weaknesses. • Tracks remediation actions and reports findings directly to the Audit Committee (BARC). EXTERNAL ASSURANCE • Auditors • ESG Assurance Through these activities, Line 3 ensures independent oversight and promotes strong governance in the Manager. In parallel, the REIT undertakes the following activities to keep risk profiles updated in line with changes in the operating environment. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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