Recital 5 Amendments to the bank recovery and resolution directive (BRRD)

Digital operational resilience means the ability of a financial entity to build, assure and review its operational integrity and reliability by ensuring, either directly or indirectly through the use of services provided by ICT third-party service providers, the full range of ICT-related capabilities needed to address the security of the network and information systems which a financial entity uses, and which support the continued provision of financial services and their quality, including throughout disruptions; is essential to preserve the critical functions and core business lines of a financial entity means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; in the event of its resolution, and thereby to avoid disruption to the real economy and to the financial system. Major operational incidents means an incident as defined in Article 6, point (6), of Directive (EU) 2022/2555; can hamper the capacity of a financial entity means a natural or legal person created and recognised as such under the national law of its place of establishment, which may, acting under its own name, exercise rights and be subject to obligations; to continue operating and can jeopardise resolution objectives. Certain contractual arrangements on the use of ICT services means 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; are essential to ensure operational continuity and to provide the necessary data in the event of resolution. In order to be aligned with the objectives of the Union framework for operational resilience, Directive 2014/59/EU should be amended accordingly, with a view to ensuring that information relating to operational resilience is taken into account in the context of resolution planning and the assessment of financial entitiesas defined in Article 2, points (a) to (t)’ resolvability.