ANNEX IISupplementary provisions
ANNEX II Annex II to Decision (EU) 2022/911 (ECB/2022/22) is replaced by the following: ‘ANNEX II TARGET GOVERNANCE ARRANGEMENTS Level 1 — Governing Council Level 2 — Technical and operational management body Level 3 — Level 3 NCBs 1. General provisions Final competence in relation to all TARGET issues, in particular the rules for the decision making in TARGET, and responsible for safeguarding the public function of TARGET — Conducting technical, functional, operational and financial management tasks in relation to TARGET and implementing the rules on governance decided by Level 1 — Taking decisions on the daily running of TARGET based on the service levels defined in the agreement referred to in Article 7(6) of Guideline ECB/2022/8 2. Pricing policy — Deciding on pricing structure/pricing policy — Deciding on the pricing envelopes — Regular review of pricing structure/ pricing policy — Drafting and monitoring of pricing envelopes (Not applicable) 3. Financing — Deciding on rules for the financial regime of TARGET — Deciding on the financial envelopes — Drafting proposals for the main features of the financial regime as decided by Level 1 — Drafting and monitoring of financial envelopes — Approval and/or initiation of instalments paid by Eurosystem CBs to Level 3 for provision of services — Approval and/or initiation of reimbursement of fees to the Eurosystem CBs — Providing cost figures to Level 2 for the service provision 4. Service level Deciding on the level of service Verifying that the service was delivered in accordance with the agreed Service level — Delivering the service in accordance with the agreed Service level 5. Operation — Deciding on the rules applicable to incidents and crisis situations — Monitoring business developments — Managing TARGET based on the agreement referred to in Article 7(6) of Guideline ECB/2022/8 6. Change and release management Deciding in case of escalation — Approving the Change requests — Approving the release scoping — Approving the release plan and its execution — Assessing the Change Requests — Implementing the Change requests in line with the agreed plan 7. Risk management — Approving the TARGET Risk Management Framework and the risk tolerance for TARGET as well as accepting remaining risks — Assuming ultimate responsibility for the activities of the first and second lines of defence — Establishing the organisational structure for roles and responsibilities related to risk and control — Conducting the risk management following the roles defined in the applicable risk management frameworks — Conducting risk analysis and follow-up according to the allocated risk ownership — Ensuring that all risk management arrangements are maintained and kept-up-to date — Approving and reviewing the business continuity plan as outlined in the relevant operational documentation — Conducting the risk management following the roles defined in the applicable risk management frameworks and related to Level 3 activities — Conducting risk analysis and follow-up according to the allocated risk ownership — Providing the necessary information for risk analysis according to Level 1/Level 2 requests and the risk management frameworks in place 8. System rules — Establishing and ensuring adequate implementation of the European System of Central Banks’ legal framework for TARGET including the Harmonised Conditions for participation in TARGET (Not applicable) (Not applicable) ’.