SECTION 07 pg. 210 AL-SALĀM REIT IDENTIFYING AND ANALYSING SIGNIFICANT CHANGES The Manager continuously monitors internal and external developments that may introduce new risks, influence the effectiveness of existing controls, or alter the operational, financial, or strategic risk profile of Al-Salām. In accordance with COSO requirements, significant changes trigger event-driven risk assessments to ensure that emerging risks are promptly identified, evaluated, and incorporated into the enterprise and departmental risk registers. This proactive approach ensures that the REITs remain resilient, compliant, and well-governed amidst a dynamic operating environment. During the year, several notable changes were identified as having potential risk implications: Organisational Restructuring & Leadership Transition The Manager underwent a major leadership transition with the appointment of a new CEO and the senior management team. A refreshed organisational structure was introduced, establishing clearer lines of accountability, new sub-units, and refined roles and responsibilities across functions. New appointments of senior management team include: a) Chief Financial Officer: Ahmad Nazri bin Mohamad, appointed on 17 February 2025 c) Chief Investment Officer: Mohd Adrian bin Abu, appointed on 7 July 2025 c) Head of Strategy & IR: Ng Hui Mei, appointed on 7 April 2025 d) Head of Governance & Legal: Nor Shakira binti Zainal, appointed on 7 April 2025 While these changes strengthen long-term strategic and operational oversight, they also introduce transitional risks such as potential disruptions to continuity, changes in decision-making patterns, competency gaps, onboarding challenges, and the need to realign internal controls with the new structure. Significant Change Risk Statement Mitigation Measures Leadership transition with new CEO, management team, and updated org structure Leadership Transition Risk: New leadership structure may create temporary gaps in continuity, oversight, and decision-making. • Event-driven risk assessment conducted. • Updated LoA and reporting lines. • Strengthened governance oversight during transition. Capability & Knowledge Transfer Risk: Loss of institutional knowledge due to staff or leadership changes. • Structured handover plans and documentation. • Mandatory onboarding for new leaders. • Increased management supervision during transition phase. Role & Responsibility Misalignment: New sub-units may cause temporary ambiguity. • Updated job descriptions & R&R clearly defined. • Communication of new structure across departments. • Controls realigned to new roles and approval flows via LoA STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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