Chubb has a Risk Management Framework (“RMF”) in place which is designed to help the Company achieve a prudent and reasonable balance between risk and return. Chubb’s RMF provides the framework or structure for managing risk and future events effectively, which is needed to both protect and enhance the business in meeting its strategic objectives.
The RMF takes into account the Company’s business and financial objectives and regulatory needs. It outlines the degree of risk the Company is willing to assume in pursuit of its strategic objectives. The Board of Directors (“the Board”) of Chubb has the ultimate responsibility and oversight of the Company’s risk management and in discharging this responsibility, the Board delegates key functions to the Enterprise Risk Committee which in turn assists and reports to the Board. Primary ownership for the daily execution of risk management and controls rests with the business, led by Chubb’s senior management.
The Company’s Enterprise Risk Management (ERM) framework is modelled after the Chubb Group’s global ERM framework. More information about the Chubb Group’s ERM can be found under Item 1 of Form 10-K – “Enterprise Risk Management” here.