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 25 Testing of the ICT business continuity plans

  1. When testing the ICT business continuity plans in accordance with Article 11(6), of Regulation (EU) 2022/2554, financial entitiesas defined in Article 2, points (a) to (t) shall take into account the financial entity’s business impact analysis (BIAbusiness impact analysis) and the ICT riskany reasonably identifiable circumstance in relation to the use of network and information systems which, if materialised, may compromise the security of the network and information systems, of any technology dependent tool or process, of operations and processes, or of the provision of services by producing adverse effects in the digital or physical environment assessment referred to in Article 3(1), point (b), of this Regulation.

  2. Financial entitiesas defined in Article 2, points (a) to (t) shall assess through the testing of their ICT business continuity plans referred to in paragraph 1 whether they are able to ensure the continuity of the financial entity’s critical or important functionsa 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. That testing shall:

    1. be performed on the basis of test scenarios that simulate potential disruptions, including an adequate set of severe but plausible scenarios;

    2. contain the testing of ICT servicesdigital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services provided by ICT third-party service providersan undertaking providing ICT services, where applicable;

    3. for financial entitiesas defined in Article 2, points (a) to (t), other than microenterprisesa financial entity, other than a trading venue, a central counterparty, a trade repository or a central securities depository, which employs fewer than 10 persons and has an annual turnover and/or annual balance sheet total that does not exceed EUR 2 million, as referred to in Article 11(6), second subparagraph, of Regulation (EU) 2022/2554, contain scenarios of switchover from primary ICT infrastructure to the redundant capacity, backups and redundant facilities;

    4. be designed to challenge the assumptions on which the business continuity plans are based, including governance arrangements and crisis communication plans;

    5. contain procedures to verify the ability of the financial entities’ staff, of ICT third-party service providersan undertaking providing ICT services, of ICT systems, and ICT servicesdigital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services to respond adequately to the scenarios duly taken into account in accordance with Article 26(2)

    For the purposes of point (a), financial entitiesas defined in Article 2, points (a) to (t) shall always include in the testing the scenarios considered for the development of the business continuity plans.

    For the purposes of point (b), financial entitiesas defined in Article 2, points (a) to (t) shall duly consider scenarios linked to insolvency or failures of the ICT third-party service providersan undertaking providing ICT services or linked to political risks in the ICT third-party service providers’ jurisdictions, where relevant.

    For the purposes of point (c), the testing shall verify whether at least critical or important functionsa 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 can be operated appropriately for a sufficient period of time, and whether the normal functioning may be restored.

  3. In addition to the requirements referred to in paragraph 2, central counterpartiesa central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012 shall involve in the testing of their ICT business continuity plans referred to in paragraph 1:

    1. clearing members;

    2. external providers;

    3. relevant institutions in the financial infrastructure with which central counterpartiesa central counterparty as defined in Article 2, point (1), of Regulation (EU) No 648/2012 have identified interdependencies in their business continuity policies.

  4. In addition to the requirements referred to in paragraph 2, central securities depositoriesa central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 shall involve in the testing of their ICT business continuity plans referred to in paragraph 1, as appropriate:

    1. users of the central securities depositoriesa central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014;

    2. critical utilities and critical service providers;

    3. other central securities depositoriesa central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014;

    4. other market infrastructures;

    5. any other institutions with which central securities depositoriesa central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014 have identified interdependencies in their business continuity policy.

  5. Financial entitiesas defined in Article 2, points (a) to (t) shall document the results of the testing referred to in paragraph 1 Any identified deficiencies resulting from that testing shall be analysed, addressed, and reported to the management bodya management body as defined in Article 4(1), point (36), of Directive 2014/65/EU, Article 3(1), point (7), of Directive 2013/36/EU, Article 2(1), point (s), of Directive 2009/65/EC of the European Parliament and of the Council, Article 2(1), point (45), of Regulation (EU) No 909/2014, Article 3(1), point (20), of Regulation (EU) 2016/1011, and in the relevant provision of the Regulation on markets in crypto-assets, or the equivalent persons who effectively run the entity or have key functions in accordance with relevant Union or national law.

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