1.Member States shall ensure that the management body approves and at least every two years reviews the strategies and policies for taking up, managing, monitoring and mitigating the risks the institution is or might be exposed to, including those posed by the macroeconomic environment in which it operates in relation to the status of the business cycle, and those resulting from the current and short-medium and long-term impacts of environmental, social and governance (ESG) factors.
Member States may, taking into consideration the principle of proportionality, allow the management bodies of small and non-complex institutions to review the strategies and policies referred to in the first subparagraph every two years.
2. Member States shall ensure that the management body devotes sufficient time to consideration of risk issues. The management body shall be actively involved in and ensure that adequate resources are allocated to the management of all material risks addressed in this Direc
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