TERMS OF REFERENCE OF RISK MANAGEMENT COMMITTEE

  1. DUTIES AND RESPONSIBILITIES

    The Committee oversees Sunway REIT’s overall risk management framework and all its related policies.

    The Committee is accountable to the Board and is responsible to advise the Board on the adequacy and effectiveness of the risk management framework.

    The Committee is also responsible to oversee the operational compliance function and to monitor operational compliance by Sunway REIT at property level (where applicable).

    The Committee’s main duties and responsibilities include the following:

    (a) recommending appropriate risk management framework, related policies and measurement methodologies for approval by the Board;
    (b) reviewing and assessing the relevance and adequacy of the risk management framework, governance structure and processes and its continuous benchmark against relevant standards;
    (c) reviewing and recommending risk management strategies, policies and level of risk appetite and risk tolerance for the Board’s approval;
    (d) assessing and monitoring the effectiveness of risk treatment/ mitigation action plans for the management and control of key business risks;
    (e) reviewing potential risks and risk mitigation plans, if any, related to new acquisitions;
    (f) ensuring infrastructure, resources and systems are in place and adequate for risk management;
    (g) reviewing management’s periodic reports on risk exposure, risk profile and risk mitigation activities to ensure adequacy and effectiveness;
    (h) reviewing the operational compliance framework, the plan and scope of the compliance function at property level (where applicable);
    (i) monitoring the overall compliance to relevant statutory and regulatory requirements as well as internal policies and guidelines, at property level (where applicable);
    (j) promoting better governance culture and ethical behaviour within Sunway REIT group by ensuring that structured policies and procedures on anti-corruption are in place, and place greater emphasis on corruption as part of annual risk assessment of Sunway REIT group; and
    (k) working with the Chief Financial Officer and Internal Auditor and contribute to the preparation of the Statement on Risk Management and Internal Control for inclusion in the Annual Report, and to recommend the same for the approvals of the Committee and Board.

    The Risk Management Working Group (“RMWG”), Risk Officer together with the respective business units will assist the Committee by identifying and managing risks within Sunway REIT. The RMWG and Risk Officer provide updates on key risks together with their action plans to the Committee through half yearly reporting.