STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROLS Key Features of Internal Control (Cont’d) The key elements and/or features of the internal control system established for maintaining strong corporate governance are as follows (Cont’d): (g) Human Capital and Talent Management (Cont’d) Employee Safety & Health The Human Resource Unit is in charge of the Safety & Health issues at the operating level to address and ensure compliance with Occupational Safety and Health policies and procedures, with a goal to facilitate the provision of a safe and healthy working environment for all employees and other related parties in compliance with the requirements of the Occupational Safety and Health Act 1994. The manager approved the document archiving in November 2023 to eliminate the hazard from overload office space. This is a continuous program to ensure workplace condition remain practical. Following the new normal brought about by the COVID-19 pandemic, the Manager has taken a prudent approach in ensuring that where employees are to Work from Home (WFH), where applicable, proper equipment, safety training and policies are provided or in place, to ensure the employee’s health safety and welfare are accordingly protected in the course of their work. The Manager undertakes adequate insurance coverage on both its employees and assets to ensure both are sufficiently insured against any losses arising from various perils faced in the Manager’s REIT’s operations. (h) Outsourcing Functions to Third-Party Service Providers The REIT Manager entered into a few outsourcing arrangements that involved entrusting specific tasks, functions, or processes to external partners or third-party service providers. The objectives of these arrangements are to leverage the benefit from the partner’s expertise infrastructure and economies of scale to improve cost efficiency to enable the organisation to focus more on core operations. To mitigate the risks that these arrangements have on the company’s performance the REIT Manager has set up the following controls: Fit & Proper - Ensure that the service providers are professionally qualified to carry out the services - Carry out due diligence exercises which include background checks on the service providers, which may include background checks on the person or entity, a document verification process, or conducting interviews with the person to be appointed to undertake the key role in providing the services. - Undertake an ESG compliance assessment on the potential service providers to ensure that there in no environmental risks in the service providers’ activities - Require the service provider to sign a vendor Integrity Pledge to ensure compliance to policies relating to Anti-Bribery & Anti Corruption, No-Gift, No Entertainment and Whistle-blowing Policy. This is a part and parcel to combat bribery and corruption in an organisation. - Ensure that the service providers comply with other governance requirements such as undertaking data privacy protection as part of the contract terms. This aligns with the REIT’s pledge to enforce its Personal Data Protection (PDP) Policy in providing assurance to its data owners – tenants, directors, and employees that their personal data will be safeguarded and protected by the REIT. In addition, the company also requires service providers to take cognizant of the Anti-Money Laundering and Anti-Terrorism Financing Policy and all applicable laws to commensurate with the nature of the ompany’s businesses and activities. 142 CORPORATE GOVERNANCE 1 2 3 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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