Risk Management

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Risk management

We diligently enhance our risk management strategies, adhering to stringent practices to prioritize the long-term interests of our stakeholders.

01 Managing enterprise risk
02 Business resiliency

01 Managing enterprise risk

Managing enterprise risk

Managing enterprise risk

Moody’s Board of Directors oversees the implementation of risk management policies and processes. The Audit Committee supports this oversight by overseeing risk assessment and management processes. Our Enterprise Risk Management (ERM) function manages risk exposures and establishes a standard, organization-wide understanding of risk management based on the 2017 COSO framework.

Any material sustainability-related risks would be reported to the appropriate risk committee then reported to the Executive Leadership Team and Board by the Chief Risk & Resilience Officer. For more information about our risk factors, see our 2024 Annual Report.

02 Business resiliency

Business resiliency

Business resiliency

We continuously refine and evolve our processes to improve resilience against disruptive events. Our business impact analysis gives us insight into the criticality of our operations to drive resiliency prioritization, and our business continuity plans support these efforts. These plans encompass local crisis management teams and risk assessments for each office location, and we regularly update them to consider external risks, internal business changes, and learnings from events like geopolitical threats. Additionally, we conduct annual third-party risk assessments of key vendors and run a risk-based testing program that includes tabletop scenario exercises related to cybersecurity.

Integration of climate risks into overall risk management

We incorporate climate risk into our company-wide risk management processes, providing a holistic view of relevant risks through the use of a multipronged approach. Managed by the MD of Risk Management, the ERM function continually monitors a risk register. Climate-related risks are aligned to the Moody’s risk taxonomy, assisting in identifying significant risks and opportunities.

Integration of climate risks into overall risk management