Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 58

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 58
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 solvency, this plan is defined, between others, in accordance with supervisory and regulatory requirements, the risk assessment process and the cycle of capital audits, taking into account the results of engagements in previous years and other criteria, such as the ratio of implementation of recommendations issued, the results of regulatory inspections, requests made by supervisory authorities and changes in mandatory regulations.

The scope of Santander´s Group capital functions includes, mainly, the capital measurement and reporting processes, as well as, the adequacy, planning and management. It also performs other tasks focusing on transversal issues with significant impact on the Group's solvency, such as analysis of credit portfolios and accounting provisions, risk management processes and other Group strategic exercises.

Regarding the models used for capital calculation, in accordance with the "ECB Guide to Internal Models" of February 2024 (General Aspects, point 5), the Internal Audit performs a risk assessment exercise on the models used to calculate capital, identifying main focus of review over the "rating system" and the greatest risks in the following major lines of action:

• Reviewing compliance with the Group's internal governance model and supervisory requirements for the approval and maintenance of advanced models.

• Managing models and their adequacy and integration.

• Analysing the accuracy of risk measurement. Checking, through analysis and tests on the quality, consistency and integrity of the Basel databases, that the methodology used in constructing the risk parameter models is consistent with their intended uses and complies with corporate standards and regulatory requirements as well as, the adequacy of internal validation function.

• Review of the regulatory capital calculation and reporting process, verifying compliance with existing regulations.

• Analysing the technical aspects and applications of the technological environment.

The key processes of the internal audit function are the activities that allow to develop the function according to the following detail:

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| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

#### 3.3.3. Internal Audit - Key processes
70 2024 Pillar 3 Disclosures Report

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

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| Index |     | Introduction |     | Capital |     | Risks |