Al-`Aqar Healthcare REIT Annual Report 2019

• Risk assessment reporting To require that all papers that are submitted to the Board by Management relating to strategy, key project approval, significant action or investment must include a detailed risk assessment report. • To implement a robust and sustainable ERM framework that is aligned with DRMSB’s vision and mission, and in accordance with best practices. The Board recognises that a structured and consistent ERM framework is instrumental for DRMSB to deploy its operational strategy effectively. These policies will be achieved via:- • Periodic reporting to the Board on risk management activities and keep the Board apprised and advised of all aspects of ERM and significant individual risks and risk trends; • Provision of adequate and suitable resources, including tool(s) and manpower to ensure the ERM framework and system are operating effectively; • Provision of adequate education and communication to ensure staff comprehend the requirements, benefits, and their role and responsibilities for risk management; • Maintaining documented risk information (via risk registers and risk action plans) and procedures for the control of risks; and • Organisational Structure and Assigned Roles and Responsibilities. RISK MANAGEMENT STRUCTURE The Risk Management Structure is designed to ensure effective communication, consultation and education in risk management are necessary to achieve a successful integration of the risk processes into the business and to provide reports, which may be conveyed in full, to the Audit Committee, as part of the half- yearly Risk Report. The Manager’s ERM Risk Reporting Structure:- NON-MANAGEMENT / SUPPORT STAFF BOARD OF DIRECTORS EXCO RISK MANAGEMEMENT COMMITTEE BUSINESS DEVELOPMENT & INVESTOR RELATIONS COMPLIANCE OPERATIONS TAKAFUL FINANCE CORPORATE SERVICES Internal Audit Accounts Corporate Finance Legal Human Resource Administration Corporate Planning Acquisitions Divestment Risk Management Compliance Sustainability Internal Audit Monitoring of Properties Asset Management Claims Policy Renewals THE EXECUTIVE ROLES ANDRESPONSIBILITIES The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control to safeguard the unitholders’ interests and the Fund’s assets, as well as to discharge its responsibility in identifying principal risks and ensuring the implementation of an appropriate risk management and internal control system to manage those risks in accordance with Principle B – Effective Audit and Risk Management of the Malaysian Code on Corporate Governance 2017. Al-`Aqar Healthcare REIT 05 ESSENCE OF CORPORATE GOVERNANCE 93