Article 17
Establishment of a risk management framework
1. The risk-management framework referred to in Article 4(4)(f) of Regulation (EU) 2020/1503 shall be:
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(a) |
integrated into the crowdfunding service provider’s overall organisational and decision-making structure; |
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(b) |
proportionate to the complexity of the crowdfunding service provider business operating model. |
2. Within their risk-management framework, crowdfunding service providers shall specify the roles or functions responsible for credit risk assessment and monitoring tasks, the process of approval of crowdfunding projects to be proposed to investors, and loan valuation.
3. Crowdfunding service providers shall establish transparent reporting frameworks. Those reporting frameworks shall ensure that the management body of crowdfunding service providers and roles and functions are provided with adequate information enabling them to measure, assess and monitor credit risk. The reporting framework shall be sufficiently detailed and documented.
4. The management body of the crowdfunding service provider shall oversee implementation of the governance and organisational arrangements relating to the risk-management framework, including the establishment, maintenance and publication of the respective policies and procedures.