(2)In order to ensure proportionality, the classification criteria and the materiality thresholds should reflect the size and overall risk profile, and the nature, scale and complexity of the services of all financial entities. Moreover, the criteria and materiality thresholds should be designed in such a way that they apply consistently to all financial entities, irrespective of their size and risk profile, and do not pose unproportional reporting burden to smaller financial entities. However, in order to address situations where a significant number of clients are affected by an incident which as such does not exceed the applicable threshold, an absolute threshold mainly targeted at larger financial entities should be set out.