189 CORPORATE GOVERNANCE REPORT Integrated Annual Report 2025 STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL RISK GOVERNANCE, ASSESSMENT AND MANAGEMENT PROCESSES Al-`Aqar operates a diversified healthcare-focused portfolio including hospitals, nursing colleges, and healthcare-related facilities in Malaysia and Australia. The Board, BARC, and Management reinforce a strong tone at the top by promoting integrity, ethical conduct, compliance, and transparency across operations BOARD RESPONSIBILITY The Board affirms its responsibility for overseeing the REIT’s risk management and internal control system to safeguard unitholders’ interests and the REIT’s assets. The system is designed to provide reasonable, not absolute, assurance against material misstatement, operational disruption, financial loss, or breach of regulatory obligations. The Board oversees risk management through its specialised committees, each providing focused oversight across key risk areas. RISK GOVERNANCE STRUCTURE A robust governance structure comprises the Board and its Committees; BARC, BIC, BNRC, and BSC. Each committee provides focused oversight over its respective risk domains including financial reporting, investment risks, people and succession risks, and climate/ESG related risks. The Governance Structure for the Risk Management and Internal Control is depicted below: CHIEF EXECUTIVE OFFICER Board Audit and Risk Committee (BARC) Strategic Risks Financial Risks Operational Risk Compliance, Governance & Legal Risk MANAGEMENT INVESTMENT COMMITTEE (MIC) ENTERPRISE RISK MANAGEMENT COMMITTEE (ERMC) SUSTAINABILITY MANAGEMENT COMMITTEE (SMC) Board Nomination and Remuneration Committee (BNRC) Board Investment Committee (BIC) Board Sustainability Committee (BSC) External and Internal Auditor Market Risks Business Continuity/ Disaster Recovery Risks Regulatory ESG Risks Climate Risks (Physical) Integrity Risks Partnership Risks Climate Risks (Transition) Emerging Risks (PESTLE) GOVERNANCE FRAMEWORK CONTEXT MANAGEMENT COMMITTEE (MC) Capital Management Refinancing Risk Covenant Risk Cost of Capital Enterprise Risk Management Framework BUSINESS LINE MANAGEMENT/ RISK OWNERS BOARD OF DIRECTORS
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