Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 526

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 526
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 and encouraging geographic and functional mobility, which we placed special emphasis on in 2024. Continuous investment in our risk employees’ development and promoting diverse teams and a global outlook are key to boosting risk expertise across our footprint.

| For more details on our relationship with our subsidiaries, see section7.‘Group structure and internal governance’of the 'Corporate Governance' chapter. |

1.4 Risk management processes and tools In the following section, we describe Grupo Santander's processes and tools to carry out effective risk management. Risk appetite and structure of limits Risk appetite is the aggregate level and types of risk we deem prudent for our business strategy, even in unforeseen circumstances. The risk appetite is expressed through qualitative statements and quantitative limits and metrics representative of the bank’s risk profile. Those metrics cover all key risk types according to our corporate risk framework. We articulate them in five axes that provide us with a holistic view of all risks we incur in the development of our business model:

|                                           |     | Key risks                                                                                                                                                                               |     |             |     |                |     |                 |     |              |     |                      |     |            |     |               |     |                |
| Risk Appetite axes                        |     | Credit risk                                                                                                                                                                             |     | Market risk |     | Liquidity risk |     | Structural risk |     | Operat. risk |     | Financial Crime Risk |     | Model risk |     | Reputat. risk |     | Strategic risk |
| P&L volatility                            |     | Control of P&L volatility associated with business plan under baseline and stressed conditions                                                                                          |     |             |     |                |     |                 |     |              |     |                      |     |            |     |               |     |                |
| Solvency                                  |     | Control of capital ratios under baseline and stressed scenarios (aligned with ICAAP)                                                                                                    |     |             |     |                |     |                 |     |              |     |                      |     |            |     |               |     |                |
| Liquidity                                 |     | Control of liquidity ratios under base and stress scenarios (aligned with ILAAP)                                                                                                        |     |             |     |                |     |                 |     |              |     |                      |     |            |     |               |     |                |
| Concentration                             |     | Control of concentration levels in customers, sectors and portfolios                                                                                                                    |     |             |     |                |     |                 |     |              |     |