218 SECTION 08 AL-`AQAR HEALTHCARE REIT RISK MANAGEMENT Legend: Severity: Very Low Moderate Low High Very High Likelihood: Very Low Low Moderate High Very High Capitals: Financial Capital Portfolio Capital Intellectual Capital Human Capital Social Capital Natural Capital Resources: Financial Capital Systems Implementation Equipment Acquisition Appointed Personsin-Charge Technology Utilisation Manpower and Talent Al-`Aqar adopts a risk management approach that is integrated with its value creation strategies. This is because risks do not occur in isolation but directly influence the REIT’s ability to achieve its long-term objectives. By embedding risk mitigation initiatives within the broader strategic framework, Al-`Aqar ensures that every response not only addresses vulnerabilities but also reinforces operational resilience and competitive strength. This alignment transforms risk management from a reactive safeguard into a proactive enabler of value creation. STRATEGIC ALIGNMENT OF RISK MANAGEMENT Value Creation Strategies Core Risk Management Strategy Tenant Base Expansion & Diversification • Reduce concentration risk • Stabilise income • Future-proof tenant relationships KPJ-Complementary Asset Growth • Ensure regulatory compliance • Support healthcare tenants • Secure long-term growth Healthcare Value Chain Diversification • Enhance resilience • Reduce costs • Improve ESG ratings • Maintain competitiveness Aged Market Capitalisation • Maintain growth momentum • Avoid stagnation • Capture market opportunities Based on the core risk management strategies, each risk faced by the REIT is efficiently managed as follows: > > > >
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