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 its average risk profile low, with a comfortable capital adequacy ratio and comfortable liquidity metrics, in line with its business model and the risk appetite defined by the Board of Directors.

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

KEY ELEMENTS OF THE RISK MANAGEMENT FRAMEWORK 

STRATEGIC RISK MANAGEMENT PROCESSES

RISK CULTURE

GOVERNANCE AND ORGANISATION

Governance and organisation. Internal policies, rules and procedures ensure adequate supervision by the governing bodies, steering committees, and by CaixaBank's specialised teams.

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

Identification and assessment of risks. Risk Assessment: A six-monthly risk self-assessment of the Group’s risk profile. Its objective is to assess the inherent risk situation and its trend, management and control, as well as the results for each of the risks in the Catalogue. It is one of the main sources for identifying: emerging risks, risks whose materiality or importance is trending in such a way that they could be explicitly included in the catalogue of risks, and strategic events, which affect one or more risks that, due to their potential impact in the medium term, should be given special attention.

Classification and definition of risks. Corporate Risk Catalogue: An annually-reviewed list and description of the material risks identified in the Risk Assessment. It facilitates monitoring and reporting of the Group's risks, both internally and externally.

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

Risk culture. The Group’s risk culture is imparted through training, communication and the performance-based assessment and 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.