68. Competent authorities should assess the resilience of the institution’s business model to …

Competent authorities should assess the resilience of the institution’s business model to external shocks and its adaptability to structural changes in terms of its capacity to absorb them and adapt to exogenous factors that could threaten business and strategic objectives. Areas for analysis by competent authorities should include:

• a. climate-related and other environmental risks, by assessing their impact on the institution’s current and future business environment and business strategy, the institution’s exposure to material transition and physical risks, as well as the development and implementation of a plan to monitor and address the financial risks stemming from ESG factors - including those arising from the process of transition towards regulatory objectives, in particular climate-related objectives applicable in the jurisdiction(s) where the institution operates;
• b. digitalisation, by assessing the use and adoption level of new technologies and impact on the institution’s business strategy and business plan, execution capabilities and cost control, as well as revenue generation;
• c. operational resilience, by reviewing the institution’s operational resilience approach and its consideration to the business strategy by the management body;
• d. geopolitical risks, by assessing the source of geopolitical uncertainties and its inclusion in the business strategy, as well as their financial impact on the institution’s current and future profitability, while also taking into account the institution’s capacity to withstand such uncertainties, for instance by means of its geographical and business profile diversification;
• e. crypto-asset activities, if applicable, by assessing the institution’s provision of crypto-asset services and any other activities related to crypto-assets.

1. Übersicht

1.1 Referenzen

1.2 Identifizierte Anforderungen

1.3 Zugehörige Standards

2. Identifizierte Anforderungen

3. Zugehörige Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/