89. In assessing the institution’s risk management framework, competent authorities should assess …

In assessing the institution’s risk management framework, competent authorities should assess institution’s compliance with the EBA Guidelines on Internal Governance, the DORA and other EBA Guidelines issued pursuant to Article 74(3) of Directive 2013/36/EU on internal governance arrangements, processes and mechanisms. In this context, competent authorities should consider inter alia whether:

• a. the institution has established an appropriate risk management framework and risk management processes, encompassing an appropriate and implemented risk strategy, risk appetite, including a third-party risk management policy, ICAAP and ILAAP frameworks and stress testing capabilities and results;
• b. where applicable, the group-wide risk management framework covers all material risks regardless of whether the risk arises from entities not subject to consolidation and establishes a comprehensive view on all risks the institution is or might be exposed to;
• c. the management body has the ultimate responsibility for the risk strategy, risk appetite and risk management framework and provides appropriate direction and oversight;
• d. the institution, and where applicable the consolidating institution, has documented and implemented an appropriate risk strategy and risk appetite, which cover all the institution’s material risks, contain risk limits and tolerances, and reflect the instit ution’s financial resources;
• e. the risk management framework establishes adequate procedures for risk identification, measurement, mitigation and monitoring and the extent to which it is embedded in, and how it influences, the overall strategy of the institution;
• f. the decision-making processes are clear, transparent and adequately documented, and take into account the appropriate risk considerations, and whether policies and amendments to policies are communicated in a proper and timely manner;
• g. there are appropriate and consistent links between the business strategy, risk strategy, digital operational resilience strategy, risk appetite and risk management framework, and the capital and liquidity management frameworks, as well as the institution’s plan to address ESG risks in accordance with Article 76(2) of Directive 2013/36/EU.

1. Visão geral

1.1 Referências

1.2 Requisitos identificados

1.3 Normas relacionadas

2. Requisitos identificados

3. Normas relacionadas

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