Risk management framework

Preamble (Recitals 1 – 30)

Recitals

Title I (Article 1)

General principle

Article 1

Overall risk profile and complexity

Title II (Articles 2 – 27)

Further harmonisation of ICT risk management tools, methods, processes, and policies in accordance with Article 15 of Regulation (EU) 2022/2554

Chapter I (Articles 2 – 18)

ICT security policies, procedures, protocols, and tools

Section 1

Article 2

General elements of ICT security policies, procedures, protocols, and tools

Section 2

Article 3

ICT risk management

Section 3

ICT asset management

Article 4

ICT asset management policy

Article 5

ICT asset management procedure

Section 4

Encryption and cryptography

Article 6

Encryption and cryptographic controls

Article 7

Cryptographic key management

Section 5

ICT operations security

Article 8

Policies and procedures for ICT operations

Article 9

Capacity and performance management

Article 10

Vulnerability and patch management

Article 11

Data and system security

Article 12

Logging

Section 6

Network security

Article 13

Network security management

Article 14

Securing information in transit

Section 7

ICT project and change management

Article 15

ICT project management

Article 16

ICT systems acquisition, development, and maintenance

Article 17

ICT change management

Section 8

Article 18

Physical and environmental security

Chapter II (Articles 19 – 21)

Human resources policy and access control

Article 19

Human resources policy

Article 20

Identity management

Article 21

Access control

Chapter III (Articles 22 – 23)

ICT-related incident detection and response

Article 22

ICT-related incident management policy

Article 23

Anomalous activities detection and criteria for ICT-related incidents detection and response

Chapter IV (Articles 24 – 26)

ICT business continuity management

Article 24

Components of the ICT business continuity policy

Article 25

Testing of the ICT business continuity plans

Article 26

ICT response and recovery plans

Chapter V (Article 27)

Report on the ICT risk management framework review

Article 27

Format and content of the report on the review of the ICT risk management framework

Title III (Articles 28 – 41)

Simplified ICT risk management framework for financial entities referred to in Article 16(1) of Regulation (EU) 2022/2554

Chapter I (Articles 28 – 32)

Simplified ICT risk management framework

Article 28

Governance and organisation

Article 29

Information security policy and measures

Article 30

Classification of information assets and ICT assets

Article 31

ICT risk management

Article 32

Physical and environmental security

Chapter II (Articles 33 – 38)

Further elements of systems, protocols, and tools to minimise the impact of ICT risk

Article 33

Access Control

Article 34

ICT operations security

Article 35

Data, system and network security

Article 36

ICT security testing

Article 37

ICT systems acquisition, development, and maintenance

Article 38

ICT project and change management

Chapter III (Articles 39 – 40)

ICT business continuity management

Article 39

Components of the ICT business continuity plan

Article 40

Testing of business continuity plans

Chapter IV (Article 41)

Report on the review of the simplified ICT risk management framework

Article 41

Format and content of the report on the review of the simplified ICT risk management framework

Title IV (Article 42)

Final provisions

Article 42

Entry into force

Article 24 Components of the ICT business continuity policy

  1. Financial entitiesas defined in Article 2, points (a) to (t) shall include in their ICT business continuity policy referred to in Article 11(1) of Regulation (EU) 2022/2554 all of the following:

    1. a description of:

      1. the objectives of the ICT business continuity policy, including the interrelation of ICT and overall business continuity, and considering the results of the business impact analysis (BIAbusiness impact analysis) referred to in Article 11(5) of Regulation (EU) 2022/2554;

      2. the scope of the ICT business continuity arrangements, plans, procedures, and mechanisms, including limitations and exclusions;

      3. the timeframe to be covered by the ICT business continuity arrangements, plans, procedures, and mechanisms;

      4. the criteria to activate and deactivate ICT business continuity plans, ICT response and recovery plans, and crisis communications plans;

    2. provisions on:

      1. the governance and organisation to implement the ICT business continuity policy, including roles, responsibilities and escalation procedures ensuring that sufficient resources are available;

      2. the alignment between the ICT business continuity plans and the overall business continuity plans, concerning at least all of the following:

        1. potential failure scenarios, including the scenarios referred to in Article 26(2) of this Regulation;

        2. recovery objectives, specifying that the financial entity shall be able to recover the operations of its critical or important functionsmeans a function, the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law; after disruptions within a recovery time objective and a recovery point objective;

      3. the development of ICT business continuity plans for severe business disruptions as part of those plans, and the prioritisation of ICT business continuity actions using a risk-based approach;

      4. the development, testing and review of ICT response and recovery plans, in accordance with Articles 25 and 26 of this Regulation;

      5. the review of the effectiveness of the implemented ICT business continuity arrangements, plans, procedures and mechanisms, in accordance with Article 26 of this Regulation;

      6. the alignment of the ICT business continuity policy to:

        1. the communication policy referred to in Article 14(2) of Regulation (EU) 2022/2554;

        2. the communication and crisis communication actions referred to in Article 11(2), point (e), of Regulation (EU) 2022/2554.

  2. In addition to the requirements referred to in paragraph 1, central counterpartiesmeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012; shall ensure that their ICT business continuity policy:

    1. contains a maximum recovery time for their critical functions that is not longer than 2 hours;

    2. takes into account external links and interdependencies within the financial infrastructures, including trading venuesmeans a trading venue as defined in Article 4(1), point (24), of Directive 2014/65/EU; cleared by the central counterpartymeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012;, securities settlement and payment systems, and credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council (32); used by the central counterpartymeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012; or a linked central counterpartymeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012;;

    3. requires that arrangements are in place to:

      1. ensure the continuity of critical or important functionsmeans a function, the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law; of the central counterpartymeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012; based on disaster scenarios;

      2. maintain a secondary processing site capable of ensuring continuity of critical or important functionsmeans a function, the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law; of the central counterpartymeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012; identical to the primary site;

      3. maintain or have immediate access to a secondary business site, to allow staff to ensure continuity of the service if the primary location of business is not available;

      4. consider the need for additional processing sites, in particular where the diversity of the risk profiles of the primary and secondary sites does not provide sufficient confidence that the central counterparty’s business continuity objectives will be met in all scenarios.

    For the purposes of point (a), central counterpartiesmeans a central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012; shall complete end of day procedures and payments on the required time and day in all circumstances.

    For the purposes of point (c)(i), arrangements referred to in that point shall address the availability of adequate human resources, the maximum downtime of critical functions, and fail over and recovery to a secondary site.

    For the purposes of point (c)(ii), the secondary processing site referred to in that point shall have a geographical risk profile which is distinct from that of the primary site.

  3. In addition to the requirements referred to in paragraph 1, central securities depositoriesmeans a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014; shall ensure that their ICT business continuity policy:

    1. takes into account any links and interdependencies to users, critical utilities and critical service providers, other central securities depositoriesmeans a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014; and other market infrastructures;

    2. requires its ICT business continuity arrangements to ensure that the recovery time objective for their critical or important functionsmeans a function, the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law; shall not be longer than 2 hours.

  4. In addition to the requirements referred to in paragraph 1, trading venuesmeans a trading venue as defined in Article 4(1), point (24), of Directive 2014/65/EU; shall ensure that their ICT business continuity policy ensures that:

    1. trading can be resumed within or close to 2 hours of a disruptive incident;

    2. the maximum amount of data that may be lost from any IT service of the trading venuemeans a trading venue as defined in Article 4(1), point (24), of Directive 2014/65/EU; after a disruptive incident is close to zero.

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