The Australian Prudential Regulation Authority published its Corporate Plan for 2024–25 on 28 August 2024, outlining a regulatory agenda anchored by the implementation of the CPS 230 operational risk standard and the development of APRA's first system stress test, designed to examine interconnections across Australia's financial system. The plan sets out APRA's priorities for the financial year.
CPS 230, the Prudential Standard on Operational Risk Management, is scheduled to take effect on 1 July 2025. Among its headline obligations, APRA-regulated institutions will be required to submit an annual register of material service providers.
CPS 230 AND OPERATIONAL RESILIENCE REQUIREMENTS
APRA noted in the Corporate Plan that improving cyber risk management remained a priority.
The regulator's partnership with the Australian Securities and Investments Commission under the Financial Accountability Regime, known as FAR, also featured in the Corporate Plan's priorities. FAR, which came into force for banks in March 2024 and extends to insurers and superannuation funds from March 2025, creates individual accountability obligations for senior executives.
SYSTEM STRESS TEST
The Corporate Plan set out APRA's intention to conduct its first-ever system stress test, designed to understand interconnections and risk transmission across the financial system, with a particular focus on the links between banking and superannuation.
APRA also listed a review of the liquidity standard and a consultation on additional tier 1 capital instruments among its priorities for the year.
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