Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 290

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 290
---
 and one-off transactions. |

| • |     | Monitor the risk strategy approved by the Board of Directors through its approval of the RAS. |

| • |     | Keep the risk inventory up to date, justifying those not considered to be material, and review the inventory of 
 material risks.                                                                                                 |

| • |     | Establish and maintain an equivalence between subsidiaries’ local taxonomies and the Group taxonomy. |

| • |     | Conduct a risk assessment of the Group’s risk profile on an annual basis. |

| • |     | Supervise the risk management and control activities carried out by the first line of defence to ensure they conform to                                     
 the established policies and procedures, bearing in mind the tasks specifically assigned to it, and identify potential improvements within risk management. |

A-64

| • |     | The Validation division gives opinions regarding the suitability of new proposals, changes or adjustments to models,                                                                    
 tools and processes with material methodological components. It also designs and rolls out the model risk management and control framework and monitors the Group’s model risk profile. |

| • |     | The Compliance division identifies and periodically assesses compliance risks in the different areas of activity. |

| – | Third line of defence: helps the Group to achieve its objectives, carrying out verification activities and providing                                         
 independent and objective advice. Provides regular oversight of governance processes and of the established risk management and internal control activities. |

4.4 Management and monitoring of the main material risks The most salient aspects concerning the management of the first-tier risks identified in Banco Sabadell Group’s risk taxonomy and concerning the actions taken in this regard in 2024 are set out below: 4.4.1 Strategic risk Strategic risk is associated with the risk of losses or negative impacts materialising as a result of strategic decisions or their subsequent implementation. It also includes the inability to adapt the Group’s business model to changes in the environment in which it operates. The Group develops a Strategic Plan which sets out the Bank’s strategy for a specified period of time. In 2021, Banco Sabadell defined a new Strategic Plan which sets out the key courses of action and transformation for each business line over the coming years, in order to seize the opportunity of consolidating its position as a major domestic bank. As part of the Strategic Plan, the Group carries out five-year financial projections, which are the result of the implementation of the strategies defined in the Plan. These projections are carried out on the basis of the most likely economic scenario