ISO 31022 Legal Risk Principles

We aim to implement, actively promote, and practice fit - for - purpose Legal Risk Management and conduct 
business that safeguards KAFD against legal and associated risks .

We strive to comply and continuously 
improve conformity with the relevant laws and regulations of the Kingdom of Saudi Arabia; whilst drawing from 
and applying the latest applicable industry codes and standards.

We aim to achieve our goals through the deployment of the following principles and practices:

1. Integrated: Legal risk management must be embedded in governance, strategy, decision - making, and 
operations, with clear responsibilities and alignment with compliance, safety, quality, and internal controls. 
Legal experts and other specialists should be consulted when assessing risks.
2. Structured and comprehensive: Legal risks should be assessed within a clear context to ensure a consistent, 
comprehensive, and systematic approach.
3. Customized: Legal risk management should reflect the organization’s regulatory environment, industry, 
structure, and objectives. The organization must understand applicable laws, track legal changes, assess 
impacts, and minimize legal complexity, costs, and potential disputes through proactive actions or balanced 
settlements.
4. Inclusive: Stakeholders should be involved in legal risk management while maintaining confidentiality and 
legal privilege where appropriate.
5. Dynamic: The organization should monitor and adapt to legal, policy, and contextual changes and establish 
early warning indicators.
6. Best available information: Legal risk management should use business intelligence, analytics, legal 
databases, case management tools, and the expertise of internal or external legal advisors.
7. Human and cultural factors: Mechanisms should be in place to prevent human or cultural factors from 
creating legal risks, and employees should understand how their actions affect legal risk.
8. Continual improvement: Legal risk processes should be enhanced through lessons learned, reviews, best 
practices, legal updates, and professional advice.9. Equity: Decision - makers should apply principles of fairness by managing conflicts of interest and ensuring 
unbiased, independent decisions that support due diligence and the organization’s best interests.

W e commit to a proactive legal compliance culture where every team member is empowered to raise or halt 
activities that pose legal risk, without fear of reprisal. Upholding legal and regulatory obligations is 
non - negotiable and fundamental to protecting our organization.