Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 413

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 413
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, the Group carries out five-year financial projections, which are the result of the implementation of the strategies defined in the Plan. These projections are carried out on the basis of the most likely economic scenario for the key geographies (baseline scenario) and they are also included in the ICAAP as a baseline scenario. The economic scenario is described in terms of the key risk factors impacting the Group’s income statement and balance sheet. In addition, the Plan is regularly monitored in order to analyse the Group’s most recent performance and changes in the environment, as well as the risks taken. The projection exercises and their monitoring are integrated into management arrangements, as they set out the key aspects of the Group’s medium- and long-term strategy. The Plan is drawn up at the business unit level, on the basis of which the Group manages its activities, and annual results are also assessed in terms of compliance with the risk appetite. Strategic risk includes the management and control of four risks:

| – | Solvency risk: this is the risk of not having sufficient capital, in terms of either quality or quantity, to achieve                                                     
 strategic and business objectives, withstand operational losses or meet regulatory requirements and/or the expectations of the market in which the Institution operates. |

| – | Business risk: this refers to the possibility of incurring losses as a result of adverse events that negatively                                                      
 affect the Institution’s capacity to operate, either in the short term (viability) or in the medium term (sustainability), or to deliver healthy, recurrent profits. |

| – | Reputational risk: current or future risk of the Bank’s competitive capacity being negatively affected as a                                                                                                                            
 result of (i) actions or omissions, carried out by or attributed to the Group, Senior Management or its governing bodies, or (ii) maintaining business relationships with counterparties with poor reputation, resulting in a negative 
 perception by its stakeholders (regulators, employees, customers, shareholders, investors and the general public).                                                                                                                     |

| – | Environmental risk: risk of incurring losses as a result of the impacts, both those existing at present and those                                                                                                                                    
 that may exist in the future, of environmental risk factors on counterparties or invested assets, as well as aspects affecting financial institutions as legal entities. Environmental factors are related to the quality and functioning of natural 
 systems and resources, and include factors such as climate change and environmental degradation. Any one of them can have a positive or negative impact on the financial performance or solvency of an institution, sovereign state