Our Enterprise Risk and Return Management (ERRM) governance includes an executive management committee structure, Board oversight and chief risk officers (‘CROs’).
Our Enterprise Risk and Return Council (ERRC) establishes risk-return targets, determines economic capital levels and directs integrated strategies and actions from an enterprise perspective. The ERRC is a senior management committee appointed by the CEO and chaired by the Chief Risk Officer (CRO). ERRC members include the CEO, business unit presidents, enterprise and business unit CROs and chief financial officers, the General Counsel and the Treasurer. The ERRC convenes monthly to assess and manage the various risks and opportunities faced by the company, which may include topics such as climate change.
The Board oversees Allstate’s business and management, including risk management, and regularly reviews:
- Overall business strategy
- Business plans for Allstate’s property and casualty business, life insurance and annuity business and its investment portfolio
- Liquidity and use of capital
- Legal, regulatory and legislative issues
Twice a year, the Board reviews Allstate’s risk management objectives and processes. The Audit Committee discusses risk assessment and risk management processes with management quarterly.
CROs are appointed for the enterprise and for Allstate Protection, Allstate Financial and Allstate Investments. Collectively, the CROs create an integrated approach to risk and return management to ensure risk management practices and strategies are aligned with Allstate’s overall enterprise objectives.
Read more about our risk-management systems and the risk factors identified in 2012 in our Annual Report or in our Audit Committee Charter.