Risk management

The Board of Directors, the Senior Management and the Group as a whole are firmly committed to risk management.

CaixaBank aims to keep a medium-low risk profile, with a comfortable capital adequacy ratio and comfortable liquidity metrics, in line with its business model and the risk appetite established by the Board of Directors.

As part of the internal control framework and in accordance with the Corporate Global Risk Management Policy, the Group has a risk management framework that enables it to make informed risk-taking decisions, consistent with the target risk profile and appetite level approved by the Board of Directors. This framework contains the following elements:


Strategic risk management processes

Risk culture

Governance and organisation

Governance and organisation: it is implemented through internal policies, standards and procedures that ensure proper oversight by the governing bodies and committees, as well as by specialised staff.

Strategic risk management processes to identify, measure, monitor control and report risks:

Identification and assessment of risks. Risk Assessment: a six-monthly self-assessment of the Group’s risk profile. Its objective is to identify material risks, assessing for these the inherent risk situation and its trend, as well as their management and control, and emerging risks. This involves identifying strategic events which may affect one or more risks that, due to their potential impact in the medium term, should be specifically monitored.

Classification and definition of risks. Risk Taxonomy: an annually-reviewed list and description of the material risks identified in the Risk Assessment process. It facilitates monitoring and reporting of the Group's risks, both internally and externally, and the consistency throughout the Group.

Risk Appetite Framework (RAF): a comprehensive and forward-looking tool used by the Board of Directors to determine the types and thresholds it is willing to assume in achieving the Group's strategic objectives concerning all risks included in the Risk Taxonomy.

Risk culture: the Group’s risk culture is based, among other things, on general risk management principles, employee training and evaluation of variable remuneration of staff.

For more information on Risk Management and its Governance and Control system, consult the section Committees of Directors (Risks) and, in Economic-financial information (Other), the page on Pillar 3 report.