“Risk management at BBVA –new focus and structure.”

The ten maxims of the risk function at BBVA:

1. A separate global risk function that provides adequate information for decisions at all levels.
2. An objective decision process that incorporates all relevant risk factors (whether qualitative or quantitative).
3. Active management of the risk life cycle – from prior analysis and approval, to extinction of the risk (the business risk continuum).
4. Clear processes and procedures, revised regularly depending on emerging requirements, and well-defined lines of responsibility.
5. Comprehensive management of all risk (lending, market and operational) by means of identification, quantification and uniform management based on a common standard (economic capital allocation).
6. Specific methods for handling risk (circuits and procedures) according to type.
7. Creation and deployment of advanced decision-support tools, incorporating efficient new technologies that facilitate risk management.
8. Decentralisation of decisions, using the available methodologies and tools.
9. Incorporation of risk factors in all business decisions (strategic, tactical and operational).
10. Alignment of the goals of the risk department and its staff with the goals of the group, to maximise the creation of value.

Source: BBVA