Travelers 2014 Annual Report Download - page 37

Table of Contents
group and the Enterprise Underwriting group. A senior executive serves as Chief Risk Officer and oversees the ERM process. The mission of this
executive is to facilitate risk assessment and to collaborate in implementing effective risk management strategies throughout the Company. Another
strategic ERM objective of this executive includes working across the Company to enhance effective and realistic risk modeling capabilities as part
of the Company's overall effort to understand and manage its portfolio of risks to be within its risk appetite. Board oversight of ERM is provided by
the Risk Committee of the board of directors, which reviews the strategies, processes and controls pertaining to the Company's insurance
operations and oversees the implementation, execution and performance of the Company's ERM program.
The Company's ERM efforts build upon the foundation of an effective internal control environment. ERM expands the internal control
objectives of effective and efficient operations, reliable financial reporting and compliance with applicable laws and regulations, to fostering,
leading and supporting an integrated, risk
- based culture within the Company that focuses on value creation and preservation. However, the
Company can provide only reasonable, not absolute, assurance that these objectives will be met. Further, the design of any risk management or
control system must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. As a result, the
possibility of material financial loss remains in spite of the Company's significant ERM efforts. An investor should carefully consider the risks and
all of the other information set forth in this annual report, including the discussions included in "Item 1A—Risk Factors," "Item 7A—Quantitative
and Qualitative Disclosures About Market Risk," and "Item 8—Financial Statements and Supplementary Data."
OTHER INFORMATION
Customer Concentration
In the opinion of the Company's management, no material part of the business of the Company and its subsidiaries is dependent upon a single
customer or group of customers, the loss of any one of which would have a material adverse effect on the Company, and no one customer or group
of affiliated customers accounts for 10% or more of the Company's consolidated revenues.
Employees
At December 31, 2014, the Company had approximately 30,200 employees. The Company believes that its employee relations are satisfactory.
None of the Company's employees are subject to collective bargaining agreements.
Sources of Liquidity
For a discussion of the Company's sources of funds and maturities of the long
- term debt of the Company, see "Item 7—Management's
Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources," and note 8 of notes to the
Company's consolidated financial statements.
Taxation
For a discussion of tax matters affecting the Company and its operations, see note 12 of notes to the Company's consolidated financial
statements.
Financial Information about Reportable Business Segments
For financial information regarding reportable business segments of the Company, see "Item 7—Management's Discussion and Analysis of
Financial Condition and Results of Operations," and note 2 of notes to the Company's consolidated financial statements.
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