Article 1 › 5

‘5. Member States shall, in accordance with the proportionality requirement laid down in Article 7(2) of Commission Directive 2006/73/EC (*17), ensure that institutions have internal control functions independent of the operational functions and which shall have sufficient authority, stature, resources and access to the management body. Member States shall ensure that: (a) the internal control functions ensure that all material risks are properly identified, measured and reported; (b) the internal control functions provide a comprehensive view of the whole range of risks that the institution is exposed to; (c) the risk management function is actively involved in elaborating the institution’s risk strategy and in all its material risk management decisions and has control over the effective implementation of the risk strategy; (d) the internal audit function performs an independent review of the effective implementation of the institution’s risk strategy; (e) the compliance function assesses and mitigates compliance risk and ensures that the institution’s risk strategy takes into account compliance risk and that compliance risk is adequately taken into account in all material risk management decisions.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04