Overview Economy Community People Environment Governance & Risk Disclosure GRI & ADX 88GRI 102-11, 102-15, 102-16, 102-29, 103-2, 103-3 We use a comprehensive risk management framework to protect shareholders’ investments, stakeholder rights and the company’s assets, and prevent violations of the applicable laws and regulations. Aldar’s Enterprise Risk Management (ERM) function ensures effective management of all risks that could negatively impact the company’s ability to achieve its strategic objectives. A dedicated ERM team is responsible for helping the company’s business units to identify, assess and put in place control plans for existing and emerging risks. This team conducts regular, comprehensive reviews of best practice, benchmarking Aldar against other companies in the market that are recognised for robust ERM activities. Following research, stakeholder input and an understanding of government plans (including Abu Dhabi’s recent Sustainable Urban Planning Vision), Aldar has committed to incorporating sustainability into its risk registers for both Aldar Investment and Aldar Development. From 2021, each subsidiary will operate a risk register under the guidance of separate Risk Management Committees. The two registers will largely operate independently of each other as part of the new Aldar operating model, with reporting to the Board on sustainability risks to be carried out by the ERM team. Once a risk is identified in the ERM framework, it will be reviewed like any other risk. Internal controls Our internal control system reduces risks related to our operations, finances, and compliance. The Internal Audit Department manages our annual review and assessment of internal controls, reporting to the Audit Committee. The internal control system includes policies that regulate Aldar’s activities and contribute to reducing ESG risks. These include the Social Responsibility Policy, the Code of Business Conduct, the Whistleblower and Fraud Policies. The effectiveness of the internal control system is overseen by the External Auditor, the Internal Audit Department and management. We continuously share market disclosure with analysts, investors, and shareholders. Further details on our internal control system are provided on page 86 of the Annual Report. Principal risks Aldar conducts an annual assessment of principal risks (see page 88 of our Annual Report). In 2020, the five most significant risks were identified as market cyclicality, geographical concentration in the Emirate, talent retention, health and safety, and information systems and cyber threat. The latter three risks are also material sustainability issues and are covered in detail in this report on pages 50-55, 61-65 and 87 respectively. Risk management In 2021, we will develop a dedicated register to track sustainability risks across the business. Acting under the direction of the Sustainability & CSR Department, the register will mobilise the network of Sustainability Champions and newly appointed Risk Champions to identify material sustainability risks and mitigation plans. For details of Aldar’s wider risk management approach, please see page 86 of our 2020 Annual Report.