139. As part of the overall internal control framework, investment firms should have a holistic …

As part of the overall internal control framework, investment firms should have a holistic investment firm-wide risk management framework extending across all their business lines and internal units, including internal control functions, recognising fully the economic substance of all their risk exposures including the risks the investment firm poses to itself, its customers and markets and liquidity risks, in particular those that can have a material impact on or deplete the level of own funds available. The risk management framework should enable the investment firm to make fully informed decisions on risk-taking. The risk management framework should encompass all risks as well as actual risks and future risks that the investment firm may be exposed to. Risks should be evaluated from the bottom up and from the top down, within and across business lines, using consistent terminology and compatible methodologies throughout the investment firm and at a consolidated level. All relevant risks should be encompassed in the risk management framework with appropriate consideration given to both financial and non-financial risks, including market, liquidity, concentration, operational, IT, reputational, legal, conduct, compliance with AML/CTF and other financial crime, ESG and strategic risks.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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