The European Central Bank (ECB) has published a draft Guide on Governance and Risk Culture in line with the Single Supervisory Mechanism (SSM) priority on effective management bodies and diversity. This guide explains the ECB’s expectations for the structure and operation of management bodies and committees, as well as the responsibilities of internal control functions. It emphasises the importance of having a strong risk culture and provides insights into best practices observed by the ECB in recent years.
Key updates include:
- Detailed expectations for management bodies and committees
- Roles and responsibilities of internal control functions
- Importance of risk culture
- Guidelines for risk appetite frameworks
The guide is open for public consultation until 16 October 2024.
As part of this process, the ECB will host a virtual stakeholder meeting on 26 September 2024 from 11 am to 1 pm CET. For more details, please visit the public consultation page.
ECIIA advocates the critical role of internal audit in maintaining strong corporate governance and is committed to continuous dialogue with the ECB. The reaction to the consultation will follow in the upcoming weeks.