Recital 26 Coordinated testing regime requirements

In addition, where no ICT testing is required, vulnerabilities means a weakness, susceptibility or flaw of a product with digital elements that can be exploited by a cyber threat; remain undetected and result in exposing 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 ICT risk means any 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; and ultimately create a higher risk means the potential for loss or disruption caused by an incident and is to be expressed as a combination of the magnitude of such loss or disruption and the likelihood of occurrence of the incident; to the stability and integrity of the financial sector. Without Union intervention, digital operational resilience testingas defined in Article 24 would continue to be inconsistent and would lack a system of mutual recognition of ICT testing results across different jurisdictions. In addition, as it is unlikely that other financial subsectors would adopt testing schemes on a meaningful scale, they would miss out on the potential benefits of a testing framework, in terms of revealing ICT vulnerabilities means a weakness, susceptibility or flaw of a product with digital elements that can be exploited by a cyber threat; and risks means the potential for loss or disruption caused by an incident and is to be expressed as a combination of the magnitude of such loss or disruption and the likelihood of occurrence of the incident;, and testing defence capabilities and business continuity, which contributes to increasing the trust of customers, suppliers and business partners. To remedy those overlaps, divergences and gaps, it is necessary to lay down rules for a coordinated testing regime and thereby facilitate the mutual recognition of advanced testing for financial entitiesas defined in Article 2, points (a) to (t) meeting the criteria set out in this Regulation.