CORPORATE GOVERNANCE OVERVIEW STATEMENT PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) THE ENTERPRISE RISK MANAGEMENT COMMITTEE (“ERMC”) The ERMC is a management Committee established at the Company Level to identify potential events that may affect the Fund and the REIT Manager adversely, and systematically manage risk within its risk appetite, to provide reasonable assurance regarding the achievement of strategic objectives. ERMC also supports the BARC in fulfilling its oversight responsibilities with respect to ERM Policy & Framework and its processes, including risk assessment on key strategic, financial, operational and compliance risks. Other responsibilities of the ERMC include: (a) To coordinate the development of risk management policies and procedures and its initiatives to ensure an effective ERM Framework is in place; (b) To review and deliberate risk reports and, where applicable, recommend mitigation strategies for implementation; (c) To provide regular updates to the BARC on respective mitigation measures and action plans relating to the respective residual risk profile and ERM initiatives; (d) To monitor, develop, review, assess and recommend to BARC on risk management strategies, policies and risk tolerance limits. OVERSIGHT AND ASSESSMENT OF THE SUITABILITY AND INDEPENDENCE OF EXTERNAL AUDITORS The Board has established a transparent relationship with the Company’s External Auditors and Internal Auditors via the BARC who has explicit authority to communicate directly with them. The External Auditors confirmed to the BARC of their independency at each financial year and during their presentation of relevant audit Memorandum. The Board considered the suitability and independence of the External Auditors during the discussion of the Group Audit Plan for the financial year ended 31 December 2021. The factors that take into account including the adequacy of experience and resources of the firm and professional staff assigned to the audit and the level of non-audit services to be rendered by the External Auditors to the Group for the financial year under review. The BARC had conducted an annual assessment of the timeliness, competence, audit quality and resource capacity of the external Auditor in relation to the audit, the nature and extent of the non-audit services rendered and the appropriateness of the level of fees. The BARC had also obtained assurance confirming that the External Auditors are independent in accordance with the terms of all relevant professional and regulatory requirements. RISK MANAGEMENT AND INTERNAL CONTROL The Board has the oversight responsibility of the adequacy and effectiveness of the Manager’s system of internal controls which comprises the governance, risks and controls aspects. The Board believes that effective maintenance of the system is important to help the Fund to achieve its various objectives at many levels and having considered the risks that the Fund faces whilst balancing out the interest of its many stakeholders and protecting the assets and investments. The Board fulfils its oversight function of risk management and internal control system via the BARC. The Enterprise Risk Management (“ERM”) Policy and Framework provides guidance to both the Board and Management on the risk management reporting structure and governance, processes, assessment methodologies and tools. AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 98
RkJQdWJsaXNoZXIy NDgzMzc=