Document ID: chunk:federal_register_of_legislation:F2019L00669:body:0:p5
Version: federal_register_of_legislation:F2019L00669
Segment Type: other
Provision Reference: 
Character Range: 11424–14403

requirements of this Prudential Standard does not relieve an APRA-regulated institution within the group from the need to comply with any prudential requirements of that institution.
12.         Where an APRA-regulated institution is part of a group and any element of the risk management framework is controlled or influenced by another entity in the group, the institution's risk management framework must specifically take into account risks arising from the group framework, and clearly identify:
       (a)          whether the APRA-regulated institution's risk management framework is derived wholly or partially from group risk management frameworks, policies, procedures or functions;
       (b)          the linkages and significant differences between the institution's and the group's risk management framework;
       (c)          how these linkages and significant differences change the risk profile of the institution; and
       (d)          the process for monitoring by, or reporting to, the group on risk management including the key procedures, the frequency of reporting and the approach to reviews of the risk management framework.
13.         Where APRA is of the view that the fulfilment of a requirement of this Prudential Standard by a group does not adequately address the requirement for an APRA-regulated institution within that group, APRA may require that institution to meet the requirement on a separate basis within a reasonable timeframe specified by APRA.

Additional requirements of the Head of a group
14.         As part of the group risk management framework (see paragraphs 19 to 25), the Head of a group must maintain processes to coordinate the identification, measurement, evaluation, monitoring, reporting, and controlling or mitigation of all material risks across the group, in normal times and periods of stress. The Head of a group must ensure its Board has a comprehensive group-wide view of all material risks, including an understanding of the roles and relationships of subsidiaries to one another and to the Head of a group.
15.         The group risk management function (see paragraphs 37 to 42) does not need to be a function of the Head of a group, but may be a function located elsewhere in the group. The group chief risk officer (CRO) cannot be the roles specified in paragraph 39 for any institution within the group.
16.         The Head of a group must notify APRA in accordance with paragraphs 52 to 55 in respect of the group risk management framework, except where an APRA-regulated institution within the group has otherwise notified APRA of that information.
17.         The Head of a group must maintain a Board-approved liquidity management policy for the group to adequately and consistently identify, measure, monitor, and manage its material liquidity risks. The policy must include a strategy that ensures the group has sufficient liquidity to meet its obligations as they fall due, including in stressed