Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 349

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 349
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 potential future loss an institution may incur, as a consequence of decisions that could be          
 principally based on the output of internal models, due to errors in the development, implementation or use of such models. |

| – | Tax risk: the possibility of failing to achieve the objectives set out in Banco Sabadell’s tax strategy from a 
 dual perspective due to either internal or external factors:                                                   |

| • |     | On one hand, the possibility of failing to fulfil tax obligations, potentially resulting in a failure to pay taxes that 
 are due, or the occurrence of any other event that could potentially prevent the Bank from achieving its goals.         |

| • |     | On the other hand, the possibility of paying taxes not actually due under tax obligations, thus negatively affecting 
 shareholders and other stakeholders.                                                                                 |

| – | Compliance risk: defined as the possibility of incurring legal or regulatory sanctions, material financial loss or                                
 loss to reputation as a result of failing to comply with laws, regulations, internal rules and codes of conduct applicable to banking activities. |

Detailed information on the following risks is given here below. A-113

4.4.4.1 ICT risk In recent years, the importance, complexity and use of technology and data have increased even further in banking processes, especially in remote channels (online banking) as a result of the impact of Covid-19and the growing use of outsourced cloud services. Consequently, the reliance on information systems and their availability is a key factor, as the Group and its critical service suppliers are more exposed to cyberattacks just like the other operators in the sector. The ongoing geopolitical conflicts have brought with them the risk of becoming a target for cyberattacks, generating the need to introduce back-upmeasures. This risk has been stabilised but remains an ever-present threat. Furthermore, the Group is currently undergoing a process of transformation, based on the digitalisation and automation of processes, which increases the reliance on systems and the exposure to risks associated with this change, including digital fraud. ICT risk therefore remains one of the key focus areas of Banco Sabadell Group’s risk management. It should be mentioned that this risk is not only applicable to the Group’s own systems and processes, but it is also applicable to suppliers, given the widespread use of third parties for support in technological and business processes, and this therefore represents a material risk when it comes to managing outsourcing. On the topic of IT outsourcing, in 2022 a project was implemented in Spain, concentrating the number of application development, maintenance