Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 527

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 527
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| Non financial risks & control environment |     | Solid controls on non financial risks aimed to minimize financial, operative, technological losses, as well as legal and regulatory breaches, and conduct events or reputational damage |     |             |     |                |     |                 |     |              |     |                      |     |            |     |               |     |                |

Annual report 2024 508

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagementandcompliance |

Our risk appetite and business model rests on: • a medium-low, predictable target risk profile, customer focus, internationally diversified operations and a significant market share; • stable, recurrent earnings and shareholder remuneration, sustained by a sound base of capital, liquidity and sources of funding; • autonomous subsidiaries that are self-sufficient in terms of capital and liquidity to safeguard their risk profiles against compromising the Group’s profile; • an independent risk function and a senior management actively engaged in supporting a robust control environment and risk culture; and • a conduct model that protects our customers and our Simple, Personal and Fair culture. Risk appetite is governed throughout the Group by the following principles: • Risk appetite is part of the board's duties. It prepares the risk appetite statement (RAS) for the whole Group every year. In a cascading down process, each subsidiary's board also sets its own risk appetite. • Comprehensiveness and forward-looking approach. Our appetite includes of all material risks that we are exposed to and defines our target risk profile for the current and medium term with a forward-looking view considering stress scenarios. To promote that all material risks are adequately represented, we use corporate methodologies to identify and assess the risk to which we are exposed to, in the different counties, and are inherent to our activities (emerging risks and risk control self-assessment — RCSA— among others).

| For more details on these exercises see sections ‘Management and control model’ 5.2 Operational risk management'and'8.3Emerging risks'. |

• Common standards embedded in the day-to-day risk management. The Group shares the same risk appetite model, which sets common requirements for processes, metrics, governance bodies, controls and standards. It also facilitates an effective and traceable embedding of our appetite into more granular management policies and limits across our subsidiaries. • Continuous adaptation to market best practices, regulatory requirements and