Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 443

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 443
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 |     | Matters concerning the operation of the risk management system |

| • |     | Matters concerning the establishment of various limits and approval of limits |

| • |     | Make decisions on approval of the FSS’s internal rating based approach fornon-retailand retail credit rating systems |

| • |     | Matters concerning risk disclosure policy |

| • |     | Analysis of crisis situation, related capital management plan and financing plan |

| • |     | Matters deemed necessary by the board of directors |

| • |     | Materials required by external regulations such as the Financial Services Commission and other regulations and guidelines |

| • |     | Matters deemed necessary by the Chairman |

The resolution of the Group Risk Management Committee is reported to the Board of Directors.

| ii-2) | Group Risk Management Council |

In order to maintain the Group’s risk policy and strategy consistently, the Group decides what is necessary to discuss the risks of the Group and to carry out the policies set by the Group Risk Management Committee. The members are chaired by the Group’s risk management officer and consist of the risk management officers of major subsidiaries.

iii) Group Risk Management System

| iii-1) | Management of the risk capital |

Risk capital refers to the capital required to compensate for the potential loss (risk) if it is actually realized. Risk capital management refers to the management of the risk assets considering its risk appetite, which is a datum point on the level of risk burden compared to available capital, so as to maintain the risk capital at an appropriate level. The Group and subsidiaries establish and operate a risk planning process to reflect the risk plan in advance when establishing financial and business plans for risk capital management, and establish a risk limit management system to control risk to an appropriate level.

| iii-2) | Risk Monitoring |

In order to proactively manage risks by periodically identifying risk factors that can affect the Group’s business environment, the Group has established a multi-dimensional risk monitoring system. Each subsidiary is required to report to the Group on key issues that affect risk management at the Group level. The Group prepares weekly, monthly and occasional monitoring reports to report to Group management including the CRO.

In addition, the Risk Dashboard is operated to derive abnormal symptoms through three-dimensional monitoring of major portfolios, increased risks, and external environmental changes of assets for each subsidiary. If necessary, the Group takes preemptive risk management to establish and implement countermeasures.

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SHINHAN FINANCIAL GROUP CO., LTD. AND SUBSIDI