Sustainability For Our For Our Creating Value For the For Our Managing Appendix at MetLife Workforce Customers as an Investor Environment Communities Responsibly Risk Management THREE LINES OF DEFENSE RISK MANAGEMENT MODEL At MetLife, we are in the business of ESG risks, including climate risks, are First Line mitigating risk and protecting families and within the purview of multiple Board and their futures. We manage risk so that senior management committees, as they Lines of business individuals and communities can realize underpin all aspects of risk management. their full potential. MetLife has a The Finance and Risk Committee of the and corporate comprehensive and well-established risk Board of Directors oversees the assessment, management framework that constantly management and mitigation of material functions evolves and is designed to address material risks, as well as capital and liquidity identify, measure, financial and non-financial risks (including management practices. Other Board of monitor, manage and report risk compliance risks) to our business. Our risk Directors committees also have significant and control framework operates under a risk management oversight responsibilities: “Three Lines of Defense” model where each employee is responsible for risk management. • Audit: internal controls, information security It helps us identify, measure, monitor, and cybersecurity, and relevant legal and Second Line manage and report on risks at the right level, regulatory compliance allowing us to deliver on the promises we • Governance and Corporate Responsibility: Global Risk make to our customers, employees ethics, compliance programs, sales practices, and shareholders. management succession and reputation, as Management The program is led by an independent well as strategies, activities and initiatives provides strategic advisory services and effective Global Risk Management (GRM) related to sustainability and DEI challenge and oversight to the first line of defense organization headed by our Chief Risk • Investment: investment portfolio risks Officer, who reports directly to MetLife’s CEO. For more information • Compensation: compensation plan risks (e.g., about our risk management framework, avoiding incentives to take excessive risk) Third Line please visit our website. Internal Audit provides independent assurance and testing over the risk and control environment and related processes and controls 2021 SUSTAINABILITY REPORT 84