Recital 10 Implementation, monitoring and management

To ensure a sound 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; management in the provision 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; 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; by ICT third-party service providers means an undertaking providing ICT services;, the policy should contain information about the implementation, monitoring and management of the contractual arrangements, including at consolidated and sub-consolidated level, where applicable. This includes requirements for the contractual clauses on mutual obligations of the financial entitiesas defined in Article 2, points (a) to (t) and the ICT third-party service providers means an undertaking providing ICT services;, which should be set out in writing. In order to ensure an efficient supervision and foster resilience in case of changes in the business model or business environment, the policy should ensure the financial entitiesas defined in Article 2, points (a) to (t)’ or appointed third parties’ and competent authoritiesas defined in Article 46’ rights to inspections and access to information and should also further specify the exit strategies and termination processes.