STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL RISK MANAGEMENT (CONT’D) The BARC is assisted by the ERMC, which is headed by the CEO, and respective heads of department. The function of the ERMC is to drive risk management guided by the ERM Policy and Framework to ensure effective identification of emerging risks and management of identified risks through the implementation of appropriate controls and risk treatment strategies. Risk owners who are also ERMC members are managers or heads from the divisional units to identify and evaluate the risks related to their business objectives or budgets against which performance is measured and to establish the risk profiles categorised under Strategic, Financial, Operational and Compliance Risks. The discussions relating to ERM, and risk profiles are carried out through the ERMC which sits every quarter. In 2022, the Board Executive Committee is also responsible for the function of the ERMC since the CEO position is vacant since 1 July 2022. The roles and responsibilities of the BARC, the ERMC and other key personnel are summarised as below: The Board and the BARC Responsibilities Governing overall risk oversight responsibility including defining the appropriate governance structure and risk appetite. Process • Articulates and provides direction on risk appetite, organisational control environment and risk culture. • Provide an independent view on specific risk and control issues, the state of internal controls, trends and events. External Auditor Internal Auditor Enterprise Risk Management Committee BOARD NOMINATION AND REMUNERATION COMMITTEE FINANCIAL RISKS OPERATIONAL RISKS COMPLIANCE RISKS ESG RISKS STRATEGIC RISKS CONTEXT FRAMEWORK GOVERNANCE MARKET RISKS PARTNERSHIP RISKS BOARD AUDIT AND RISK COMMITTEE BOARD INVESTMENT COMMITTEE BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER (CEO) ENTERPRISE RISK MANAGEMENT FRAMEWORK AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2022 118
RkJQdWJsaXNoZXIy NDgzMzc=