Australia assures FIs with new corporate plan amidst surfacing risks

This is to assure the stability of insurers, banks, and superannuation sectors.

The Australian Prudential Regulation Authority (APRA) has revealed its latest Corporate Plan, aimed at safeguarding the stability and solidity of the insurance, banking and superannuation sectors.

The 2023-24 Corporate Plan delineates APRA's adjusted priorities for the upcoming four years, acknowledging emerging and evolving risks that impact the global financial system.

Factors influencing this updated strategy include escalating interest rates and elevated inflation, geopolitical uncertainties, the growing spectre of cyberattacks and fraudulent schemes, as well as the heightened occurrence of natural disasters. 

APRA has also taken into account insights from the collapse of Silicon Valley Bank and the takeover of Credit Suisse earlier in the year, in addition to the findings from the Financial Regulator Assessment Authority regarding APRA's approach to supervising the superannuation industry.

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Notable focus areas over the plan's timeframe include:

• Addressing system-wide risks by bolstering cross-industry stress-testing and ensuring that macroprudential policies align with the operational landscape.
• Intensifying efforts toward operational resilience, encompassing cyber resilience, crisis management, and operational risk management, to ensure the uninterrupted provision of critical financial services.
• Tackling climate-related financial risks, which involves conducting a Climate Vulnerability Assessment for general insurers and integrating climate risk considerations into APRA's supervision approach.
• Enhancing transparency within superannuation, offering members improved insights into investment performance, and amplifying APRA's attention on retirement outcomes.

Further, the Australian regulator said it will continue its efforts to modernise prudential structures and revamp its use of technology and data for more effective industry oversight and greater transparency. 

Additionally, APRA will strive to foster an agile and engaged workforce that is well-equipped to address emerging challenges and issues.