Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 210

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 210
---
 |     | 301 |
| 11.3. Capital risk                         |     | 302 |
| 11.4. Overview of Cryptoassets Activities  |     | 302 |
| 11.4.1. Risk Management and Compliance     |     | 302 |
| 11.4.2. Categorized Cryptoasset Activities |     | 303 |
| 11. OTHER RISKS                            |     |     |

2024 Pillar 3 Disclosures Report 299

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

| 11. OTHER RISKS |

This chapter focuses on different types of risk, such as compliance risk, model risk, capital risk and crypto assets risk.

11.1. Compliance risk Under the current configuration of the three lines of defense, Compliance is a second line of defense organizationally placed under to the Group Chief Risk Officer (GCRO) which independently oversees and challenges risk management of the first line of the defense. Both the GCRO and the Group Chief Compliance Officer (GCCO) are responsible for the second line of defense and have direct access to the board of directors. The Compliance function covers all matters related to corporate compliance, financial crime compliance (FCC), product governance and consumer protection, and reputational risk. The main responsibility for Compliance risks lies with the first lines of defense, which identify, assess and manage these risks. The Compliance function is responsible for monitoring and overseeing these risks and assessing the impact on our risk appetite and risk profile. To this effect, the Compliance function fosters Santander's adherence to rules, supervisory requirements, ethical principles and values of good conduct by setting standards and risk evaluation and control mechanisms, and discussing, advising and reporting, in the interests of employees, customers, shareholders and society in general. Grupo Santander's risk appetite in this area takes the form of a declaration of zero tolerance for any material weaknesses and low tolerance for relevant deficiencies (as defined in the Internal Control System Model). Santander is committed to control and limit these deficiencies, promoting an adequate awareness in the monitoring and execution of their remediation plans. To pursue this, Compliance Risk performs consistent management of this area, using a common methodology and taxonomy, which is fully aligned with the Risk function's principles, and setting a series of compliance risk indicators, assessment matrices and qualitative statements. In 2024, as in previous years, the annual process of shaping the risk