Milli Re 2025 Annual Report

Internal Control Millî Reasürans T.A.Ş.’s the internal control system and internal control activities are structured and executed to; • safeguard the Company’s assets; • provide reasonable assurance to ensure the reliability, integrity of accounting and financial reporting system and timely availability of information; • ensure that the activities in the control environment are conducted effectively, efficiently, reliably and in compliance with the applicable legislation, internal policies and procedures, , and sector customs. Pursuant to the “Regulation on Internal Systems in Insurance and Private Pension Sectors”, the Company’s internal control activities are primarily carried out by the business units conducting the related activity; while the effectiveness, adequacy and compliance of these activities are monitored and tested by the Internal Control Department reporting to the Audit Committee . The compliance controls performed by the Internal Control Department oversees the compliance of all activities planned and conducted by the Company, new products, transactions, services and/or operations with the applicable legislation, the Company’s policies and guidelines, and insurance customs. Moreover, the duties incumbent upon the compliance officer by the “Law on the Prevention of Laundering Proceeds of Crime” and the provisions of the legislation in force that relies on the said Law are fulfilled by the “Compliance Officer” working in the Internal Control Department. The Internal Control Department conducts and tests on processes related to the execution of Company’s activities, the effectiveness of communication channels, service procurements that are extensions of or complementary to the core services, and the activities carried out within the frame of business continuity management and plan. The internal control activities designed to encompass the financial reporting system and compliance controls are executed in alignment with the regulatory framework and the Company’s internal regulation. In addition, the Internal Control Department regularly monitors the audit trails pertaining to authorizations, user activities and critical transactions, all the while adhering to the segregation of duties principle. Developments and improvements that are requested in connection with business requirements or solutions in relation to the issues arising in the systems are followed up and priority is assigned to critical problems that may affect financial statements or potentially lead to legal risks. Control activities cover the entire business processes and operations of the Company. Workflows, duties and responsibilities, authorities and limits regarding the Company’s activities are updated periodically in parallel with changing conditions and risks, and announced to employees. Internal control activities carried out by executive units are based on the control points included in the process flow-charts of the related department, and the internal control activities by the IT Department are conducted in accordance with COBIT (Control Objectives for Information Related Technologies) standards. Control and testing activities carried out by the Internal Control Department, on the other hand, are conducted within the framework of the principles set out in the annual Internal Control Plan in accordance with the risk exposure of business processes and transaction frequencies. In the event that any irregularity is identified by any of these activities, necessary remedies are implemented, ensuring that actions are taken as needed to prevent recurrence. Findings from internal control activities and suggested actions for their remedy are reported by the Internal Control Department to related business units and management, , and ultimately to the Audit Committee. GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 47