Article (3): Scope of Recovery Plan and Proportionality
3.1
The recovery plan must be commensurate with the Financial Institution’s complexity, size, group and organizational structure, risk profile and interconnectedness.
3.2
Financial Institutions must assess whether they provide Critical Functions to the financial systems in which they operate and take this into account for all aspects of their recovery plan, including, in particular, the definition of stress scenarios, the calibration of recovery thresholds and the impact recovery options may have on the provision of these Critical Functions.
Examples of Critical Functions include payments, custody, certain lending and deposit-taking activities in the commercial or retail sector, clearing and settling, limited segments of wholesale markets, market making in certain securities and highly concentrated specialist lending sectors.