AIG’s ERM function integrates the risk management activities in each of our business units and provides senior management with a consolidated view of AIG’s key risks. It embeds and oversees the risk management of our business processes, which includes identifying, assessing, quantifying, managing, monitoring, reporting and mitigating AIG’s risk exposures. Accountability for the implementation and oversight of AIG risk policies is aligned with the senior leaders and executives within each business or corporate unit, who are responsible for the implementation and oversight of AIG risk policies, aligning risk-taking policies, risk tolerances and risk prioritization within the framework provided by ERM. Corporate and business unit risk committees receive regular reports regarding compliance with AIG risk policies. With respect to ESG and climate risk, ERM is supporting the development and implementation of activities through the identification of emerging risks, monitoring external developments and the potential for risk aggregation and risk accumulation across our underwriting and investments and our own operations. ERM is also supporting the development of our climate risk management and mitigation approaches, in particular where we have local regulatory requirements and expectations to meet across our international businesses. When monitoring and quantifying Insurance Risk aggregation potentials for AIG, sustainability issues are factored into assessments of sources of claim exposure, claim frequency and claim severity.