217 RISK MANAGEMENT Integrated Annual Report 2025 RISK ASSESSMENT & IDENTIFICATION As part of Al-`Aqar’s effort to strengthen its operational resilience and foster trust with stakeholders, the REIT provides enhanced disclosures and greater transparency in its identified business and sustainability risks, including plans to ensure mitigation measures remain effective. The risk identification and mitigation planning was conducted through the REIT’s ERM framework, taking into account and prioritising key material risks. The REIT further integrates climate and sustainability risks into its overarching risk management framework, ensuring the concerns of all relevant internal and external stakeholders are addressed. This initiative is aligned with the recommendations of the IFRS S1 and S2. To further align Al-`Aqar’s operations with best practice sustainability recommendations, the REIT plans on financially quantifying and disclosing identified risks in the future. The REIT prioritises risks with the highest likelihood and severity, allowing for the efficient allocation of resources for effective risk mitigation. Very High High Medium Low Very Low Very Low Low Medium High Very High LIKELIHOOD IMPACT E A B D H G F I C Risk Legend: A Delayed Asset Acquisition B Low-Productivity Portfolio C Overconcentration in a Single Tenant G Renewable Energy Installation Delays H Sukuk Alignment and Issuance Readiness D Underperforming Assets F Equipment Retrofit Delays E Asset Fair Value Sensitivity I Regulatory Documentation and Agreement Delays Low High C Overconcentration in a Single Tenant A Delayed Asset Acquisition B Low-Productivity Portfolio Readers may refer to the SORMIC for more details on Al-`Aqar’s risk management governance, ERM, monitoring, and controls.
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