On 24 July 2024, the European Central Bank (ECB) issued a consultation on a draft guide on governance and risk culture.
The purpose of the draft guide is to set out key ECB supervisory expectations when assessing the governance and risk culture of supervised entities based on the current regulatory framework. As such the draft guide does not lay down legally binding requirements nor does it introduce new rules or requirements. It does, however, build on the 2016 Single Supervisory Mechanism supervisory statement on governance and risk appetite which it will supersede when finalised. It also provides examples of some observed good practices which is intended to connect the dots between the regulatory framework and supervisory work.
The draft guide is for the internal use of various supervisory teams, with the aim of ensuring a common and consistent approach. The ECB also recommends that Member State competent authorities align with the expectations and practices set out in the draft guide when finalised for the purposes of assessing the governance of less significant institutions.
Next steps
The deadline for comments on the draft guide is 16 October 2024.
As part of the consultation process, the ECB is also organising a stakeholder meeting on 26 September 2024.