Subject matter
5. These guidelines specify the internal governance arrangements, processes and mechanisms that credit institutions and investment firms must implement in accordance with Article 74(1) of Directive 2013/36/EU to ensure effective and prudent management of the institution.
Addressees
6. These guidelines are addressed to competent authorities as defined in point 40 of Article 4(1) of Regulation (EU) No 575/2013, including the European Central Bank with regards to matters relating to the tasks conferred on it by Regulation (EU) No 1024/2013, and to institutions as defined in point 3 of Article 4(1) of Regulation (EU) No 575/2013.
Scope of application
7. These guidelines apply in relation to institutions’ governance arrangements, including their organisational structure and the corresponding lines of responsibility, processes to identify, manage, monitor and report the risks they are or might be exposed to, and internal control framework.
8. The guidelines intend to embrace
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