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Enterprise risk management

Ensuring our long-term success

  • 3M is committed to identifying and preparing for material opportunities and threats impacting our ability to deliver on stakeholder expectations. The concept of risk appetite and tolerance is an essential component of our strategic planning.

    The Board delegates primary responsibility for the oversight of risks facing the company to the Audit Committee of the Board of Directors. The Audit Committee has direct oversight of the work of two senior vice president positions, the general auditor and the chief ethics & compliance officer, that both report to the chair of the Audit Committee. The general auditor, Corporate Audit, is responsible for leading the formal risk assessment and management process within the company and annually reports the results to the full Board.

Key impacts

  • 3M’s general auditor conducts an annual review of the major risks facing the company and works with executives to assess those risks and develop appropriate mitigation plans. We keep a continual eye on ensuring business continuity through global economic and geopolitical challenges. In 2023, we prioritized health and safety, cybersecurity, environmental stewardship, and the strength of our new product pipeline and corporate reputation.

    In 2023, the general auditor met individually with each independent 3M Board member and each member of the executive-level Corporate Operating Committee (COC) to discuss risk management in general, as well as specific risk-related topics facing the company.

    Our Enterprise Risk Management (ERM) initiative helps ensure adequate recognition and ownership of the most significant potential risks to the company. ERM uses a process that proactively identifies and communicates enterprise risks within the company, including:

    • Confirming that appropriate plans and oversight exist for material risks
    • Providing for ongoing risk review and assessment
    • Aiding in generating awareness and engagement of general risk matters throughout the company

Cover of 3M Annual Report

Learn more about 3M’s risk factors

View 3M’s 2023 Annual Report