Recital 62 Guiding rules for monitoring ICT third-party risk

To ensure a sound monitoring of ICT third-party risk means an ICT risk that may arise for a financial entity in relation to its use of ICT services provided by ICT third-party service providers or by subcontractors of the latter, including through outsourcing arrangements; in the financial sector, it is necessary to lay down a set of principle-based rules to guide financial entitiesas defined in Article 2, points (a) to (t)’ when monitoring 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; arising in the context of functions outsourced to ICT third-party service providers means an undertaking providing ICT services;, particularly for 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; supporting critical or important functions means 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;, as well as more generally in the context of all ICT third-party dependencies.