STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROLS Highlights Pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements (LR) of Bursa Malaysia Securities Berhad (Bursa Securities), the Board of Directors of Listed Companies is required to include in their annual report, a statement about the state of risk management and internal control of the listed issuer. Accordingly, the Board of Directors of the Manager is pleased to provide the following statement that has been prepared in accordance with the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers endorsed by Bursa Securities and taking into consideration the recommendations of the MCCG 2021. This Statement was prepared in compliance with Recommendation 6.1 states that the board should establish a sound framework to manage risk, which among others, also outlines the role of the Board, the CEO, and the CFO in: • Determining the company’s level of risk tolerance and actively identifying, • Assessment and monitoring key business risks to safeguard shareholders’ investments and the company’s assets; • Demonstrating commitment towards to articulating, implementing, and reviewing the company’s internal control system; • Implementing periodic testing of the effectiveness and efficiency of the internal control procedures and • Processes must be conducted to ensure that the system is viable and robust; and • The board should disclose in the annual report the main features of the company’s risk • Management framework and internal control system. The Board is satisfied that the REIT Manager: • Has applied all processes for identifying, evaluating, and managing the significant risks faced by the company in its achievement of objectives and strategies; • Has reviewed the risk management and internal control system and confirmed that necessary actions have been or are being taken to remedy any significant failings or weaknesses identified from that review; • Has undertaken a review of the adequacy and effectiveness of the risk management and internal control system; The board confirmed that it has received assurance from the CEO and the Head of Finance on whether the company’s risk management and internal control system is operating adequately and effectively, in all material aspects, based on the risk management and internal control system of the company. BOARD’S RESPONSIBILITIES The board of directors and senior management practices risk management as an integral part of objective setting and optimisation of performance. To achieve a sound system of risk management and internal control, the board and management ensure that the risk management and control framework is embedded into the culture, core processes, and structures of the company. The framework is designed to be responsive to changes in the business environment, focussed on effective risk oversight and setting the tone and culture towards effective risk management and internal control. The Board’s approach towards overseeing the Group’s risk management framework and internal control systems is by designing the REIT’s risk appetite within the acceptable level of tolerance set by the Board and Management, rather than eliminating totally the risks of failure, in order to achieve the goals and objectives in generating potential returns to unitholders and ensuring a stellar financial performance of the REIT. 131 CORPORATE GOVERNANCE 1 2 3 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
RkJQdWJsaXNoZXIy NDgzMzc=