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Governance, Ethics & Integrity

You rely on us to help you create a strong financial future, and we take that responsibility seriously. We feel that trust is essential in making any relationship work. We strive to create, maintain and enhance our relationships through our commitment to act ethically, with integrity and in compliance with all laws and regulations that govern our business.

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    Enterprise Risk Management
    MassMutual’s goal is to help our policyholders protect those they love, and we do that by assuring our policyholders we’ll be here when they need us most, whether that’s tomorrow or 50 years from now.

    Making careful decisions with our policyholders’ best interests in mind is central to what we do every day. At the heart of our decision-making is a risk-management discipline, one that focuses on both financial and non-financial risks. We know that any risk can be a threat – to us and our policyholders – if not managed properly.


    Risk Culture and Corporate Governance
    Risk Management has a central role in our business operations.

    - Our Chief Enterprise Risk Officer (CRO) heads up our Enterprise Risk Management function, reports directly
      to our Chief Executive Officer (CEO) and is a member of the Executive Leadership Team.
    - The CRO also reports regularly to the Board of Directors through full board meetings and executive sessions
      on risk-related matters
    - Enterprise Risk Management professionals approve significant risk decisions and policies in addition to
      identifying and reviewing any significant risk exposures, and manage these risk exposures directly.
    - We identify, assess, and manage significant enterprise risk exposures in line with our corporate strategy and
      goal to serve our policyholders.


    Enterprise Risk
    To help our policyholders protect their families and businesses, we have established a comprehensive, disciplined process to identify and manage risks across the broadly-diversified companies that comprise the MassMutual Financial Group.

    We take a broad, multi-faceted approach to identifying risk: from analyzing trends in the business environment, to studying key performance metrics, to assessing the capabilities of key competitors.

    Risk Management identifies the possible risk events that could develop and their potential impact. But we don’t stop at just at identification. We prioritize potential risk events and proactively manage and prepare for them in case they materialize.

    Risk Management partners with individuals across MassMutual to develop and evaluate scenarios and stress tests to identify potential emerging risks for the company. We want to know answers to questions such as:

    - What if interest rates turn suddenly?
    - What if inflation kicks in?
    - What if equity markets fall dramatically?


    We also work closely with each business unit to understand risks unique to their market, including moves by competitors. We want to know:

    - What are you most worried about in your business?
    - How much of an impact would each risk have?
    - What are the key indicators that this risk will become a reality?
    - What is your business plan if this risk event occurs?


    By coordinating mitigation plans among business units, MassMutual’s risk management process helps the company develop a comprehensive understanding of potential risk – and how to proactively handle these risks to minimize the “downside” while protecting our overall strategy.

    For more details on MassMutual’s ERM framework, see the "Summary Report (PDF)" in the related information section above. Also provided in the related information section is an example of a risk evaluation done on a specific risk event "Eurozone White Paper (PDF)."


    CRN201408-163887
     


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    © 2014 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved.