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In case a metric or an indicator breaches caution or limit thresholds, escalation processes are activated in order to manage related risks, and communications are sent to inform the impacted structures/divisions/entities, to notify them about the violation and to investigate its causes.

Different escalation processes are designed in order to reflect the specific urgency, timeliness and severity of the breach, thus differentiating between those activated by the breach of the caution threshold (usually involving risk committees) and those activated by the breach of the limit threshold (typically involving the management board or supervisory board, depending on the legal entity).

Escalation processes should be designed considering:

 principles and criteria for escalation (e.g. confirmed materiality of risk, consistency with other alerts);

 scope of escalation (e.g. at local, regional and group level);

 involvement of appropriate risk type owners;

 identification of potential risk strategies to adopt (e.g. no action/mitigation/avoidance/transfer).