Recital 2 The policy

Financial entitiesas defined in Article 2, points (a) to (t), as part of their 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; management framework, are to adopt, and regularly review, a strategy on 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 accordance with Article 28(2) of Regulation (EU) 2022/2554, that strategy is to include a policy 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; 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; provided by ICT third-party service providers means an undertaking providing ICT services;. It is to apply on an individual and, where relevant, on a sub-consolidated and consolidated basis.