BBVA in 2012

Operational risk management in the Group is based on the value-adding drivers generated by the advancedmeasurement approach (AMA), as follows:1. Active management of operational risk and its integration into day-to-day decision-making means:• Knowledge of the real losses associated with this risk type (SIRO database).• Identification, prioritization and management of real and potential risks.• The existence of indicators that enable the Bank to analyze operational risk over time, define warning signalsand verify the effectiveness of the controls associated with each risk.The above helps create a proactive model for making decisions about control and business, and for prioritizingthe efforts to mitigate relevant risks as well as reducing the Group’s exposure to extreme events.2. Improved control environment and strengthened corporate culture.3. Generation of a positive reputational impact.The Group’s operational risk profileBelow are two charts that show BBVA’s operational risk profile. Chart 42 shows the Group’s risk as assessed throughthe Ev-Ro tool. Chart 43 provides a historical distribution of losses in the different geographical areas where BBVAoperates, classified by type of risk.42BBVA Group. Risk assessed with the Ev-Ro tool(Percentage)Distribution by type of riskDistribution by type of lossDisasters and suppliers 5.1Profit loss 10.9Commercial practices 3.4Human resources 3.3 Processes 46.7IT 12.1Direct loss 77.8Internal fraud 9.4External fraud 20.1Indirect loss 11.343Historical distribution of losses by type of risk(Percentage)Spain Mexico OthersCommercial practices 6.1 Disasters 2.0Human resources 2.4IT 2.4Processes 24.5Commercial practices 2.2 Disasters 1.4Human resources 1.3IT 2.6Processes 27.5Commercial practices 3.6 Disasters 2.6Human resources 6.4Processes 34,0IT 1.1Internal fraud 5.7External fraud 57.0Internal fraud 12.7External fraud 52.5Internal fraud 7.1External fraud 45.3Operational risk123