APRA retires two Prudential Practice Guides

Current risk management expectations, including areas covered by GPG 250 and LPG 250, are already tackled in Prudential Standard CPS 220 Risk Management

Australian Prudential Regulation Authority (APRA) is retiring obsolete Prudential Practice Guides (PPGs) that no longer significantly contribute to understanding current prudential requirements.

This comes after their 2023-24 Corporate Plan, an initiative Modernising the Prudential Architecture (MPA). The initiative, with a purpose of creating a concise and adaptable framework, also aims to improve the approach of the authority’s guidance.

In line with this, APRA is The identified guides for retirement are:

• Prudential Practice Guide GPG 250 - Balance Sheet and Market Risk
• Prudential Practice Guide LPG 250 - Asset and Liability Management Risk

Originally published in 2006 and 2007, these guides provided foundational guidance on risk management elements but are now deemed unnecessary. 

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Current risk management expectations, including areas covered by GPG 250 and LPG 250, are comprehensively addressed in Prudential Standard CPS 220 Risk Management, revised in July 2019. CPS 220, applicable to all APRA-regulated entities, outlines mandatory risk management framework requirements covering various risks such as credit, market, investment, liquidity, insurance, operational risks, risks from strategic objectives and business plans, and other material risks.

Prudential Practice Guide CPG 220 Risk Management supports CPS 220, rendering GPG 250 and LPG 250 redundant. These guides are therefore retired with immediate effect.

APRA said it will continue to streamline and harmonise the prudential framework as part of the ongoing MPA efforts.