How we manage ourselves and our impacts as an employer, community member, business and market leader is critical in fulfilling our purpose.
At MetLife, we are in the business of mitigating risk and protecting families and their futures. We manage risk so that individuals and communities can realize their full potential. MetLife has a comprehensive and well-established risk management framework that constantly evolves and is designed to address material financial and non-financial risks (including compliance risks) to our business.
Our risk and control framework operates under a “Three Lines of Defense” model where everyone is responsible for risk management. Global Risk Management (GRM), who makes up the second line of defense, coordinates across all risk committees to ensure that all material risks are properly identified, measured, monitored, managed and reported across the Company.
MetLife’s risk management framework provides strong governance through multiple Board and senior management risk committees (“Committees”). Environmental, Social and Governance (ESG) risks, including climate risks, are within the purview of multiple Board and senior management committees, as they underpin all aspects of risk management. These Committees are established at the enterprise, regional and local levels, as needed, to oversee capital and risk positions, approve asset liability strategies and establish certain corporate risk standards. The risk committee structure is designed to provide a consolidated enterprise-wide assessment and management of risk. The Committees are comprised of senior leaders from the lines of business and corporate functions as appropriate (e.g., Legal Affairs, Finance, Information Security, Actuarial Services, Internal Audit, etc.) which ensures comprehensive coverage and sharing of risk reporting.