Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 521

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 521
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 top management to receive accurate information, make decisions on strategy and oversee every risk to which the bank is exposed to check consistency with our risk appetite and set limits. 1.1 Risk principles and culture Grupo Santander's risk management and control must follow these mandatory principles and our risk culture (Risk Pro), which consider regulatory requirements and best market practices: 1. All employees are risk managers who must understand the risks that their work can pose and avoid taken risks that will exceed the Group’s risk appetite or have an unknown impact. 2. Senior managers must be involved to promote consistent risk management and control through their conduct, action and communications, as well as reviewing our risk culture and making sure we keep our risk profile within risk appetite. 3. I ndependence of risk management and control functions , according to our three lines of defence model (described in detail in section 1 .3 'Risk and compliance governance' ) and with clearly defined roles and responsibilities. 4. We take a forward-looking, comprehensive approach for all businesses and risk types, which should be proactive and analyse trends over different time periods and under different scenarios. 5. Effective information management to identify, assess, manage and disclose risks at appropriate levels.

Risk culture - Risk Pro One of the pillars of the Group's culture, The Santander Way, is our solid risk culture, Risk Pro (or 'I AM RISK' in the US), which is a key lever of the Group's purpose to help people and businesses prosper. Risk Pro is each employee’s accountability for the risks taken in their day to day and their individual contribution to identifying, assessing and managing risks properly and responsibly. In addition, it is part of all stages of the employee life cycle: recruitment, training, day-to-day activities, remuneration, and recognition. Because communication is a key tool in embedding our risk culture, in 2024 we enhanced all units’ communications and awareness plans in this area.

| For more details about Group's risk culture, see the section'4.1.Corporateculture'of the 'Sustainability statement'. |

1.2 Key risk types Grupo Santander has suitable procedures in place to identify, measure, manage, control and report the risks that we are exposed to in our day-to-day operations and under special circumstances. The Risk and Compliance functions follow internal regulations for each type of risk. These regulations define the processes, tools, responsibilities, roles, and governance requirements necessary to establish our control environment.

Annual report 2024 505