74. Competent authorities should assess the adequacy of the institution’s internal governance …

Competent authorities should assess the adequacy of the institution’s internal governance arrangements, taking into account the nature, scale and complexity of the risks inherent in the business model and the institution’s activities. Competent authorities should identify the extent to which the institution complies with the applicable legal and regulatory requirements regarding sound internal governance arrangements, including those listed in the previous paragraph, and identify any deficiencies. Competent authorities should assess whether material risks are posed due to poor internal governance arrangements and their potential effect on the risk profile, operational resilience and sustainability of the institution. For these purposes, the following areas should be assessed, in accordance with the proportionality principle and supervisory engagement outlined in Title 2:

• a. organisational structure, management body and its committees;
• b. risk culture and business conduct;
• c. remuneration policies and practices;
• d. internal control functions;
• e. risk management framework;
• f. ICT systems, risk data aggregation and risk reporting;
• g. ML/TF risks and prudential concerns;
• h. recovery planning governance.

1. Panoramica

1.1 Riferimenti

1.2 Requisiti identificati

1.3 Standard correlati

2. Requisiti identificati

3. Standard correlati

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