CR PRINCIPLES AND POLICY
Corporate Responsibility Report 2008
12
Building a strategy of sustainability in the BBVA Group
Markets in Financial Instruments Directive
(MiFID), Compliance continues to articulate its
business around the promotion of policies and
procedures, diffusion and training in matters of
compliance and the identification, assessment and
mitigation of potential compliance risks, being
understood as those that affect the following issues:
• Conduct on the markets.
• Treatment of conflicts of interest.
• Preventing money laundering and the financing
of terrorist activities.
• Personal data protection.
PRECAUTIO-
NARY PRINCI-
PLE: RISK
MANAGEMENT
Integration of CR within
the financial business
Integration of the regional
perspective within CR
Identification of needs
Local stakeholders
Risk lies at the heart of the
banking business and is an
integral and unavoidable part
of its operations. BBVA has
applied a general criterion
that governs the Group’s integral management as
well as that specific to corporate responsibility:
upholding the precautionary principle grounded
on risk assessment criteria that are prudent,
consistent and experience-based.
Furthermore, sea changes in the environment,
the key factors in recent times, have posed new
challenges for financial institutions that have to be
addressed using new risk management principles.
Interdepartmental
coordination
Formulation of
global strategies
Strategic plan in Corporate Responsibility
Formulation of
local strategies
National
coordination
Global stakeholders
Identification of needs
Three main objectives, which complement each
other, have been established for Risk operations
at BBVA:
• To uphold the bank’s solvency, ensuring that its
risk exposure remains within pre-established
limits and with a balanced profile
• To develop and implement a risk policy that
is consistent with the Group's strategic goals
• To help ensure that decisions taken at any level
are focused on value creation for shareholders,
based on the concept of Risk-adjusted Return
In order to meet these objectives, an
organisational structure has been designed and a
set of basic principles drawn up to underpin the
Group’s vision in risk matters.
Regarding the organisational structure, at
an initial level, the board of directors, COO and
Executive committee approve, in very general
terms, risk management policy and the entire
framework within which it is developed:
organisation, identification, measurement,
control, reporting and supervision of the risks
assumed.
Concerning basic risk management principles,
these are designed to contain those aspects
deemed to be priorities in Risk operations. Thus,
the first of these, and in keeping with the
Global coordination
in CRR
management
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