1. Institutions shall have robust governance arrangements, which include:
(a) a clear organisational structure with well-defined, transparent and consistent lines of responsibility;
(b) effective processes to identify, manage, monitor and report the risks they are or might be exposed to, including ESG risks in the short, medium and long term;
(c) adequate internal control mechanisms, including sound administration and accounting procedures;
(d) network and information systems that are set up and managed in accordance with Regulation (EU) 2022/2554;
(e) remuneration policies and practices that are consistent with and promote sound and effective risk management, including by taking into account the institutions' risk appetite in terms of ESG risks.
The remuneration policies and practices referred to in the first subparagraph, point (e), shall be gender neutral.
2. The arrangements, processes and mechanisms referred to in paragraph 1 of this Article shall be comprehensive and proportionat
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