Risk Management

Besides our investments, we also must manage a wide range of risks that potentially affect our company and our customers. To help do that, we created Allstate's Enterprise Risk and Return Council (ERRC), a senior management committee appointed by the CEO and chaired by the Chief Risk Officer (CRO). It convenes monthly to assess and manage the various risks faced by the company.

ERRC members also include the Chief Financial Officer (CFO), President(s) of Allstate Protection and Allstate Financial business units, Chief Information Officer, General Counsel, Executive Vice President of Corporate Relations, Treasurer and business unit Chief Financial Officers and Chief Risk Officers. The ERRC focuses on identifying and capturing enterprise portfolio risk/reward opportunities, which may include topics such as climate change.

The Audit Committee of our Board of Directors also discusses with management policies of risk assessment and risk management, including major financial risk exposures and steps management has taken to monitor and control them. As it relates to Allstate's business, catastrophe management plans and risk limits, climate change is the social responsibility issue primarily considered.

We're also committed to working on a national solution for catastrophe management. Allstate believes that America needs to be better prepared for the growing natural catastrophe risk. The problem is larger than any one company or even one industry. That's why Allstate is a founding member of ProtectingAmerica.org, a coalition that encourages collaboration between local, state and federal governments, consumers and the private sector. Since 2005, ProtectingAmerica.org has been working to advance a comprehensive, integrated solution to deal more effectively and efficiently with mega-catastrophes.

A senior member of our law and regulation department serves as national director of ProtectingAmerica.org, working with the National Co-Chairmen of the coalition: James Lee Witt, Former Director of the Federal Emergency Management Agency; and Admiral James M. Loy, Former Deputy Secretary of the Department of Homeland Security and retired Commandant of the United States Coast Guard.