MetLife’s culture of ethics, integrity and risk management is woven into the fabric of the organization. Employees at all levels, and in all departments, are responsible for managing risk. We expect all employees to meet the highest standards of business conduct and to fully comply with applicable laws, regulations and company policies.
Our risk management framework is designed to address all risks that are material to the business. Both financial and nonfinancial risks, including environmental, social and governance issues, are identified and managed through processes and tools. The framework provides for an independent, dedicated risk management team led by the Chief Risk Officer, who is independent of our business lines.
Risk management programs and practices are embedded in business and strategic decision-making processes. We continuously evaluate and refine our ethics and risk management practices to ensure they align with our company strategy.
Our risk management framework provides strong governance through multiple committees at the Board and senior management level. These committees are established at the enterprise, regional and, in certain instances, subsidiary insurance company level. They oversee market, credit, insurance, operational and emerging risks. The risk committee structure provides consolidated enterprise-wide assessment and management of risk. The committees, which meet on a regular basis throughout the year, are comprised of senior leaders from the lines of business and functional areas, as appropriate, to ensure comprehensive coverage and sharing of risk reporting.
The framework includes a formally adopted Enterprise Risk Appetite Statement (RAS). The RAS is a comprehensive written expression of the types and aggregate level of risk that the company wishes to assume. It establishes boundaries for managerial risk-taking as the organization pursues its strategic objectives and business plan. To support the RAS, there is a cascaded set of Segment Risk Appetite Statements that define the aggregate approved risk profile for each of our major operating segments. These cascading statements help regional and country committees support prudent risk management and comply with regulatory requirements.