Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 153

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 153
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 unsecured with the exception of borrowings from the Bank of Korea, which are generally secured with securities at fair value through other comprehensive income or at amortized cost held by us. 105

Risk Management Overview As a financial services provider, we are exposed to various risks relating to our lending, credit card, insurance, securities investment, trading and leasing businesses, our deposit taking and borrowing activities and our operating environment. The principal risks to which we are exposed are credit risk, market risk, interest rate risk, liquidity risk and operational risk. These risks are recognized, measured and reported in accordance with risk management guidelines established at our holding company level and implemented at the subsidiary level through a carefully stratified checks-and-balancessystem. We believe that our risk management system has been instrumental to building our reputation as a well-managed and prudent financial service provider and withstanding various external shocks. In particular, during the global financial crisis of 2008 and 2009, we believe our risk management provided effective early warning signals which helped us to proactively reconfigure our asset portfolio and substantially reduce our exposure to troubled debtors and thereby avoid what could have been a substantially greater credit loss during such crisis, and we are carefully upgrading and refining our risk management system in the face of current and potential economic difficulties at global, regional and domestic levels. Our group-wide risk management philosophy is to instill a culture of effective risk management and awareness at all levels of our organization and pursue a proper balance between risk and return in our business activities in order to achieve a sustainable growth. In particular, our group-wide risk management is guided by the following core principles:

| • |     | carrying out all business activities within prescribed risk tolerance levels and prudently balancing profitability and risk management; |

| • |     | standardizing the risk management process and monitoring compliance at a group-wide level; |

| • |     | operating a prudent risk management decision making system backed by active participation by management; |

| • |     | creating and operating a risk management organization independent of business activities; |

| • |     | operating a performance management system that enhances clear and prompt identification of risks when making business decisions; |

| • |     | aiming to achieve preemptive and practical risk management; and |

| • |     | prudent preparation for known and unknown contingencies. |

We take the following steps to implement the foregoing risk management principles:

| • |     | risk capital management — Risk capital refers to capital necessary to compensate for losses in case of a potential risk being realized,