Taking into account the application of the proportionality principle and a risk-based approach, financial entitiesas defined in Article 2, points (a) to (t) should have appropriate processes in place, directly or indirectly through their ICT third-party service providersmeans an undertaking providing ICT services;, to address the relevant risks that may impact the provision of ICT servicesmeans digital 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; supporting 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;, in accordance with their contractual arrangements with ICT third-party service providersmeans an undertaking providing ICT services;. Financial entitiesas defined in Article 2, points (a) to (t) should identify the most appropriate way to perform the due diligence on the subcontractors and risk assessment directly by themselves or indirectly through their ICT third-party service providersmeans an undertaking providing ICT services;, considering the specificities of the contractual arrangements and having regard of their final responsibility stemming from Regulation (EU) 2022/2554.