AlRiyada-Investors Relations

Organization Structure

Corporate Governance

It is a group of contracting relations that connect the corporate with the shareholders and the beneficiaries through finding the frames and procedures used for the management of the corporate affairs, to address its businesses to enhance the performance, transparency, discloser and accountability in the company, and to maximizing the interests for the shareholders on the long run, taking in consideration the interests of other parties. Al-Riyada Financing and Investment Company has arranged the organizational hierarchy that includes the practices of corporate governance in the proper administrative management that distinguishes the tasks and independency of jobs, and that prevents the tasks, for example: management of compliance audit, risk management and internal audit management. Moreover, the governance policies distinguishes the roles of directors board and executive management giving clear description for Head of Directors Board, board members and board secretary in addition to Chef Executive Officer, managements committees, finance manager, head of risk management and the internal auditor guaranteeing the independency of the main executive managers through the proper admin grading.

Directors

Directors Board consists of five members, one of them is independent and the other four members are non-executive. The Directors board shall assume the full responsibilities for the company management; its role includes to specify, observe and control the achievement of the company strategic goals as well as risk management and governance systems.

Risk Committee

The Risk Committee consists of three members, with the head of the Committee being one of the non-executive members of the Board of Directors. It is primarily responsible for ensuring that there is an adequate environment for risk control across the various departments and divisions of the company. It ensures that the board is aware of all the risks that the company may be exposed to. The Board delegates to the Risk Committee the responsibilities, authorities and tasks related to identifying, evaluating, controlling and limiting all risks to which the company is exposed, in addition to the tasks and responsibilities assigned to it under the Committee’s charter and the instructions of the Capital Markets Authority regarding corporate governance.

Audit Committee

This committee is responsible for securing the correctness and integrity of the financial statements and internal control systems, in addition to the entrusted tasks and responsibilities to it by committee charter and instructions of the stock markets relating to corporates governance. The committee consists of three members , one is independent member and Non-executive two members. The committee consists of three members, one independent member and two non-executive members.

Nominations and
Remunerations Committee

It is a committee that is responsible for the rewards of the company directors board and its executive management according to their performance, qualifications and experience levels. In addition, the committee holds additional responsibilities relating to nomination as specified by the stock market and the other law provisions. This committee consists of three members, providing that one of them has to be of the independent member and headed by non-executive directors board member.

Executive Committee

This committee performs all the actions and activities relating to the company and control on the management performance evaluating the results comparing them with the work plans and estimated budgets, and to identify any declines that may be caused on the results and performance, to review the reasons and explanations submitted by the management. This committee consists of two members, one of them is an executive.

Credit Follow-up Committee
and Provisions Committee

It is a committee emergent from the director’s board, it responsibilities are to follow up with the company’s finance portfolio, to review the approvals obtained for every portfolio upon execution; moreover, the committee shall review and follow up with the clients’ files in addition to submission of the recommendations in respect with the stumbled clients and adding allocation.

Internal Control Systems (IC)

The integrity and reliability of the internal control systems are achieved through policies and procedures, process automation, careful selection of employees, bringing awareness to the staff, and an organizational structure that segregates responsibilities.Control procedures have been established to safeguard its assets and to ensure that decisions, actions, and transitions are properly authorized, and financially recorded. Risk Control Self Assessments (RCSA), compliance testing and reviews are conducted periodically by the Risk Management Department and Compliance Department respectively.

Internal Audit (IA)

The internal audit in-charge registered in Al-Riyada Company. The audition operations are done by internal auditors entrusted as per the internal audit plan approved by the audit committee emergent from the company directors board as the inclusive reports are submitted directly by them to the audition committee applying the repairing politics and procedures necessary accordingly. The internal audit plan are performed through evaluating the grand risks and the extent of effective risk management as well as the control and governance operations.

Extrenal Audit

Audit Committee raises its recommendations to the directors board in respect with hiring and re-hiring the external accounts auditors or changing them, determining their salaries, making sure of their independency and reviewing their hiring letters. The general meeting of shareholders have hired Al-Nesf & Partners Office as an external auditor for Al-Riyada Financing and Investment Company.