Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 409

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 409
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 business lines
and units, in accordance with the principle of proportionality, and it is designed to enable suitably informed decisions to be made, taking into account the material risks to which it is exposed, including both financial and non-financial risks.

The RAF is aligned with the Group’s strategy and with the strategic planning and
budgeting processes, the internal capital and liquidity adequacy assessments, the Recovery Plan and the remuneration framework,

among other things,
and takes into account the material risks to which the Group is exposed, as well as their impact on stakeholders, such as shareholders, customers, investors, employees and the general public.

4.3.3 Risk Appetite Statement (RAS)

The RAS is a
key element in determining the Institution’s risk strategies. It establishes qualitative expressions and quantitative limits for the different risks that the Institution is willing to accept, or wishes to avoid, in order to achieve its business
objectives. Depending on the nature of each risk, the RAS includes both qualitative aspects and quantitative metrics, which are expressed in terms of capital, asset quality, liquidity, profitability or any other measure deemed to be relevant. The
RAS is therefore a key element in setting the risk strategy, as it determines the scope of action.

Qualitative aspects of the RAS

The Group’s RAS includes the definition of a set of qualitative aspects, which essentially help to define the Group’s position with regard to
certain risks, especially when those risks are difficult to quantify.

These qualitative aspects complement the quantitative metrics, establish the
general tone of the Group’s approach to risk-taking and define the reasons for taking or avoiding certain types of risks, products, geographical exposures and other matters.

Quantitative aspects of the RAS

The set of quantitative
metrics defined in the RAS is intended to provide objective elements with which to compare the Group’s situation against the goals or challenges proposed at the risk management level. These quantitative metrics follow a hierarchical structure,
as established in the RAF, with three levels: board (or first-tier) metrics, executive (or second-tier) metrics and operational (or third-tier) metrics.

Each of these levels has its own approval, monitoring and action arrangements that should be followed in the event a threshold is ruptured.

In order to gradually detect possible situations of deterioration of the risk position and thus be able to monitor and control it more effectively, the
RAS sets out a system of thresholds associated with the quantitative metrics. These thresholds reflect the desirable levels of risk for each