Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 752

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 752
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 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 for the key geographies (baseline scenario) and they are also included in the ICAAP as a baseline scenario. The economic scenario is described in terms of the key risk factors impacting the Group’s income statement and balance sheet. In addition, the Plan is regularly monitored in order to analyse the Group’s most recent performance and changes in the environment, as well as the risks taken. The projection exercises and their monitoring are integrated into management arrangements, as they set out the key aspects of the Group’s medium- and long-term strategy. The Plan is drawn up at the business unit level, on the basis of which the Group manages its activities, and annual results are also assessed in terms of compliance with the risk appetite. Strategic risk includes the management and control of four risks:

| – | Solvency risk: this is the risk of not having sufficient capital, in terms of either quality or quantity, to achieve                                                    
 strategic and business objectives, withstand operational losses or meet regulatory requirements and/or the expectations of the market in which an institution operates. |

| – | Business risk: this refers to the possibility of incurring losses as a result of adverse events that negatively                                     
 affect the capacity, strength and recurrence of the income statement, either because of its viability (short term) or sustainability (medium term). |

| – | Reputational risk: this is the current or future risk of losses being incurred as a result of failures related to                                                                                                                           
 processes and operations, strategy or corporate governance and which generate a negative perception among customers, counterparties, shareholders, investors or regulators that could negatively affect the Group’s ability to maintain its 
 business relationships or establish new ones, and to continue to access funding sources.                                                                                                                                                    |

| – | Environmental risk: the risk of incurring losses as a result of the impacts, both those existing at present and those                                                                                                                                   
 that may exist in the future, stemming from the environmental risk factors (associated with climate change and environmental degradation) and affecting counterparties or invested assets, as well as aspects affecting financial institutions as legal 
 entities. Environmental factors can produce negative impacts through different risk drivers, which can be categorised as either physical risks or transition