The effective management of risk is a key component of Marsh & McLennan Companies’ (MMC’s) strategy and its culture. This Risk Appetite Statement establishes a set of core principles to help guide risk-taking, monitoring and management within the firm. MMC must take risks to achieve its strategic and operational objectives. The Risk Appetite Statement is meant to promote management’s open discussion and debate about risk, but not to restrict or impede the firm’s management from taking prudent risk. We will take prudent risks for which we expect to be rewarded by greater revenue and profitability, while preventing and mitigating unrewarded risks.