Document ID: chunk:federal_register_of_legislation:F2019L00669:body:0:p2
Version: federal_register_of_legislation:F2019L00669
Segment Type: other
Provision Reference: 
Character Range: 2940–5960

authorised NOHC in section 5 of the Banking Act 1959.

authorised insurance NOHC has the meaning given to the expression authorised NOHC in subsection 3(1) of the Insurance Act 1973.

    friendly society has the meaning given in section 16C of the Life Insurance Act 1995.

    general insurer has the meaning given in section 11 of the Insurance Act 1973.

    life company has the meaning given in the Schedule to the Life Insurance Act 1995.

private health insurer has the meaning given in section 4(1) of Private Health Insurance (Prudential Supervision) Act 2015.

registered life NOHC has the meaning given to the expression registered NOHC in the Schedule to the Life Insurance Act 1995.

Schedule

Prudential Standard CPS 220 Risk Management comprises the 14 pages commencing on the following page.

Prudential Standard CPS 220 Risk Management
Objectives and key requirements of this Prudential Standard
This Prudential Standard requires an APRA-regulated institution and a Head of a group to have systems for identifying, measuring, evaluating, monitoring, reporting, and controlling or mitigating material risks that may affect its ability, or the ability of the group it heads, to meet its obligations to depositors and/or policyholders. These systems, together with the structures, policies, processes and people supporting them, comprise an institution's or group's risk management framework.
The Board of an APRA-regulated institution and the Board of a Head of a group, respectively, are ultimately responsible for having a risk management framework that is appropriate to the size, business mix and complexity of the institution or group it heads. The risk management framework must also be consistent with the institution's or group's strategic objectives and business plan.
The key requirements of this Prudential Standard are that an APRA-regulated institution and a Head of a group must:
     * maintain a risk management framework that is appropriate to the size, business mix and complexity of the institution or group, as relevant;
     * maintain a Board-approved risk appetite statement;
     * maintain a Board-approved risk management strategy that describes the key elements of the risk management framework that give effect to the approach to managing risk;
     * maintain a Board-approved business plan that sets out the approach for the implementation of the strategic objectives of the institution or group;
     * maintain adequate resources to ensure compliance with this Prudential Standard; and
     * notify APRA when it becomes aware of a significant breach of, or material deviation from, the risk management framework, or that the risk management framework does not adequately address a material risk.

Authority
     1. This Prudential Standard is made under:
       (a)          section 11AF of the Banking Act 1959 (Banking Act);
       (b)          section 32 of the Insurance Act 1973 (Insurance Act);
       (c)          section 230A of the Life Insurance