Document ID: chunk:federal_register_of_legislation:F2019L01577:body:0:p3
Version: federal_register_of_legislation:F2019L01577
Segment Type: other
Provision Reference: 
Character Range: 5891–9122

licensee's financial projections under paragraph (b) and how these assumptions take into account the material risks that have been identified under the risk management framework; and
       (d)          the key performance indicators that the RSE licensee will use to monitor its performance against the business plan and the triggers that will prompt action by the RSE licensee where expected outcomes are not being achieved.
    13.         An RSE licensee must monitor its performance against the business plan using the key performance indicators under paragraph 12(d) of this Prudential Standard.

Business performance review
    14.         An RSE licensee must, on an annual basis, review its performance in achieving its strategic objectives (business performance review) and use the results of the review to make improvements to its business operations. The results of the review must be reported to the Board.

    15.         An RSE licensee's business performance review must include:

       (a)          analysis of its performance in achieving its strategic objectives, having regard to:
            (i)                 the results of its monitoring of its business plan required under paragraph 13 of this Prudential Standard;
            (ii)               the outcomes achieved for different cohorts of beneficiaries (such that all beneficiaries are covered) against objective internal and external benchmarks; and
            (iii)            the outcomes assessments under section 52(9) of the SIS Act[6];
       (b)          the key factors identified by the RSE licensee as having affected the results of the analysis under paragraph 15(a) of this Prudential Standard; and
       (c)          the RSE licensee's conclusions as to whether it achieved, and expects to continue to achieve:
            (i)                 the outcomes it seeks for beneficiaries; and
            (ii)               the sound and prudent management of its business operations.
16.         If the RSE licensee determines that changes to its business operations would likely improve the outcomes for beneficiaries or the sound and prudent management of its business, the RSE licensee must reflect those changes in its business plan.
    17.         APRA may require an RSE licensee to appoint an appropriate independent expert to provide a report to APRA on a particular aspect of an RSE licensee's business performance review, within a timeframe agreed to by APRA. An RSE licensee must bear the costs of such an appointment.

Expenditure management
    18.         An RSE licensee must ensure that its expenditure decisions are for the purposes of the sound and prudent management of its business operations and consistent with the best interests of beneficiaries.
    19.         When making decisions relating to its business operations that will result in significant expenditure, an RSE licensee must be able to demonstrate:

       (a)          the purpose of the expenditure, including how the expenditure will contribute to the RSE licensee meeting its strategic objectives;
       (b)          how it will assess whether the expenditure is achieving its intended purpose, including any metrics used;
       (c)          the