Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 823

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 823
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 environment and risk culture; and • A conduct model that protects our customers and our Simple, Personal and Fair culture. The risk appetite is expressed through qualitative statements and limits on metrics representative of the bank’s risk profile at present and under stress. Those metrics cover all risk types according to our corporate risk framework. Grupo Santander articulates them in five axes that provide the Bank with a holistic view of all risks it incurs in the development of its business model. These five axes are applicable to all Santander's key risk types, and comprise: • P&L volatility: control of P&L volatility of business plan under baseline and stressed conditions (under normal 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 credit concentration on top clients, portfolios and industries. • Non financial risk and control environment: robust control on non financial risks aimed to minimize events which could lead to financial loss, operative, technological, legal and regulatory breaches, conduct issues or reputational damage.

b) Credit risk

1. Introduction to the credit risk treatment Grupo Santander takes a holistic view of the credit risk cycle, including the transaction, the customer and the portfolio, in order to identify, analyse, control and decide on credit risk. Credit risk identification facilitates active and effective portfolio management and control. Grupo Santander identify and classify external and internal risk in each business to adopt any corrective or mitigating measures through: 1.1. Planning Grupo Santander´s planning helps to set business targets and draw up action plans within our risk appetite statement. Strategic commercial plans (SCP) are a management and control tool the business and risk areas prepare for Grupo Santander's credit portfolios. They determine commercial strategies, risk policies, resources and infrastructure, ensuring a holistic view of the portfolios.

Annual report 2024 790

| Contents |     | Auditor's report |     | Consolidated financial statements |     | Notes to the consolidated financial statements |     | Appendix |

They provide an updated view of portfolio credit quality to measure credit risk, run internal controls on credit strategy, regularly monitor and detect significant risk deviation and potential impacts, enable decision-making and take corrective action. They are suited to the Grupo Santander's risk appetite and subsidiaries’ capital targets, having been reviewed and pre-approved by senior managers before Group management revises and validates them. 1.2. Risk assessment and credit