Rule V: Apply Sound Systems of Risk Management and Internal Audit
A brief statement on the implementation of the requirements for the formation of an independent department / office / unit for risk management:
The role of the Board of Directors is to oversee the proper application of internal control and risk management systems through the Risk Committee and the Audit Committee. The Board must also ensure, through the relevant committees, that the Internal Audit and Risk Management Department operate appropriately and independently in accordance with the relevant regulatory requirements.
In accordance with applicable regulations and laws, Risk Management reports to the Board Risk Committee
Board Risk Committee
Please refer to Rule II of this report, which contains all information on the functions and achievements of the Committee as well as the composition and meetings.
Internal Control Systems
The Board of Directors is responsible for establishing the governance framework and for monitoring the effectiveness of its implementation in a manner designed to protect shareholders’ rights and increase the company’s value. Based on the regulations and guidelines issued by the Capital Markets Authority, the company has appointed RSM (Al Bazie & Co.), the Kuwait member firm of the RSM Network, to complete the Internal Control Review.
A brief statement about applying the requirements of forming an independent department / office / unit for internal audit
The Board of Directors oversees the proper implementation of internal control systems through the Board Audit Committee. The Board monitors the operations of the Internal Audit Department and ensures the independence of the department to conduct business in a proper way in accordance with the relevant regulatory requirements.
In accordance with the applicable laws and regulations, the Internal Audit Department reports to the Board Audit Committee.