(ii) External governance: a balanced and transparent relationship must be ensured between the institution and external stakeholders (including shareholders, investors, State and the general public) Internal governance structures shall particularly ensure: 1. An appropriate monitoring environment, which defines and values high standards of ethics, integrity and skills, and establishes the institution’s overall risk tolerance profile;  2.
A sound risk management system, which ensures systematic, timely and efficient management of internal and external risks (necessarily including procedures for risk identification, evaluation, treatment, monitoring and reporting);  3. An appropriate internal control system, integrating independent control of risk management procedures, audit and compliance;  4.