Title I - Proportionality: group application and institutional protection schemes
1 Proportionality
18. Institutions, payment institutions and competent authorities should, when complying or supervising compliance with these guidelines, have regard to the principle of proportionality. The proportionality principle aims to ensure that governance arrangements, including those related to outsourcing, are consistent with the individual risk profile, the nature and business model of the institution or payment institution, and the scale and complexity of their activities so that the objectives of the regulatory requirements are effectively achieved.
19. When applying the requirements set out in these guidelines, institutions and payment institutions should take into account the complexity of the outsourced functions, the risks arising from the outsourcing arrangement, the criticality or importance of the outsourced function and the potential impact of the outsourcing on the continuity of the
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