pg. 91 Sustainability Statement Integrated Annual Report 2025 SUSTAINABILITY STATEMENT RISK MANAGEMENT As part of the REIT’s commitment to robust risk management, Al-Salām REIT takes proactive measures to identify and mitigate ESG-related risks, including environmental, social, labour, occupational health and safety (“OHS”), tax, and data protection. Risk assessments are guided by the Enterprise Risk Management (“ERM”) and conducted on a quarterly basis to ensure existing risk mitigation measures remain relevant. Identified risks are integrated into the REIT’s risk register, ensuring ESG-related concerns are addressed in the REIT’s risk management approach. This ensures that all risks and potential issues are managed before they impact operations or stakeholders, strengthening the REIT’s brand image, operational productivity, and financial performance. The REIT’s risk management is overseen by the BARC and supported by the Enterprise Risk Management Committee (“ERMC”). The BARC and ERMC identify risk parameters, appetite, profiles, and prepare mitigation measures and action plans in response to identified risks. These initiatives are cascaded to Risk Owners who manage day-to-day risks at the operational level, ensuring mitigation measures are implemented and risks are controlled effectively. The roles involved in the REIT’s risk management are detailed below: The Manager also evaluates ESG risks through a structured risk management process that is integrated into the REIT’s ERM Framework. This process considers both current and emerging risks across environmental, social and governance dimensions, including climate-related and transition risks, operational and compliance risks, workforce and community-related risks, as well as governance and ethical risks. Key ESG risk areas are identified, assessed and monitored based on their potential impact and likelihood. Mitigation measures, controls and action plans are implemented to manage these risks effectively, with oversight provided by management and the Board of Directors of the Manager. The evaluation of ESG risks informs strategic decision-making, sustainability priorities and disclosure practices, in line with Bursa Malaysia’s Sustainability Reporting Guide and the IFRS Sustainability Disclosure Standards. • Oversees the risk management framework and policies • Ensures existing controls are relevant to emerging trends and strategies • Reviews, monitors, and assesses the effectiveness of risk controls, including sustainability- and climaterelated risks • Oversees the risk management strategy operations, framework, and policies • Reports any comprehensive risk to the BARC • Conducts quarterly risk assessments • Documents identified risks to the risk register • Manages day-to-day operational risks • Implements internal controls and reports on the effectiveness of existing mitigation measures Board Audit and Risk Committee Enterprise Risk Management Committee Risk Owners
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