Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 322

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 322
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 of conflicts of interest: any conflict that affects the governing bodies.

vi. Internal communication on critical concerns: insufficient communication of critical internal issues and difficulties in escalating to the highest governance bodies.

BBVA integrates counterparty corporate governance practices into decision-making processes, and assesses operational performance standards, the existence of robust internal controls, and the oversight structure of independent processes and policies, including processes to ensure the quality of financial and non-financial reporting.

In the KYC process, sustainability governance practices in the client review and onboarding process are assessed, including the existence of board-level sustainability oversight and practices for integrating sustainability targets into management remuneration. Therefore, the management of governance aspects is assessed on the basis of its experience and knowledge of the sector, and of potential customers and their needs. In sectors with high ESG risk exposure, the ability of the customers or counterparties to manage these new risks can be critical.

The various frameworks considered when analyzing governance risk include the following statements, conventions and initiatives:

– United Nations 2030 Agenda for the Sustainable Development Goals (SDGs).

– UN Global Compact.

– OECD Guidelines for Multinational Enterprises.

– Principles for Responsible Investment (PRI).

– Principles for Responsible Banking promoted by United Nations Environment – Finance Initiative (UNEP-FI).

#### 7.4.1.

### Risk management
BBVA builds governance aspects into its risk management framework, much in the same way it does with environmental and social risks. To do so, it analyses the corporate governance performance of its clients and considers their management and governance practices in the risk underwriting process.

Integration of corporate governance practices into risk management processes

Article 449 bis CRR – Table (3) d)

The identification, assessment and monitoring of the risks of customers and their operations are integrated into BBVA’s standard risk, compliance and operations processes and tools. Decisions are based on internal information or, where appropriate, on information provided by independent external analysts. More precisely, the Governance and Management module of the corporate segment credit rating model includes these aspects.

BBVA has recently approved its risk taxonomy standard, which constitutes an inventory of all the risks to which BBVA is, or may be exposed, when carrying on its business activity and pursuing its strategy and, therefore, is adapted to BBVA’s risk profile. In this taxonomy, governance risks are treated as level 2 risks that can be translated into prudential risk categories (credit, real estate, market, liquidity and funding, business strategy, operational, reputational). Reputational risks in