Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p14
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 35979–39079

with an exemption from APRA. APRA may grant an exemption from this requirement if the individual provides specialist services that are otherwise not readily available or there are no other registered company auditors available to provide satisfactory services for the APRA-regulated institution.
78.         For a general insurer (including a Category C insurer), a life company (including an EFLIC), or a private health insurer, for the purposes of maintaining their independence and objectivity, the Appointed Auditor and Appointed Actuary cannot both be employed by the same body corporate or related bodies corporate, or by the same firm or related firms.[20]

    D.           Board Risk Committee
79.         The Board of an APRA-regulated institution (excluding foreign ADIs and Category C insurers but including EFLICs) must have a Board Risk Committee, which assists the Board by providing an objective non-executive oversight of the implementation and operation of the institution's risk management framework.
80.         The Board Risk Committee must be provided with the powers necessary to enable it to perform its functions.
81.         The chairperson of the Board Risk Committee must be an independent director of the APRA-regulated institution.
82.         The chairperson of the Board may be a member of the Board Risk Committee, but may not chair the Committee. The chair of the Board Audit Committee may also chair the Board Risk Committee.
83.         The Board Risk Committee must have at least three members. All members of the Committee must be non-executive directors of the APRA-regulated institution. A majority of the members of the Committee must be independent.
84.         The Board Risk Committee must have a written charter that outlines its roles, responsibilities and terms of operation. The responsibilities of the Committee must include:
       (a)          advising the Board on the institution's overall current and future risk appetite and risk management strategy;
       (b)          oversight of an institution-wide view of the institution's current and future risk position relative to its risk appetite and capital strength;
       (c)          oversight of senior management's implementation of the risk management strategy;
       (d)          constructive challenge of senior management's proposals and decisions on all aspects of risk management arising from the institution's activities;
       (e)          reviewing the performance and setting the objectives of the institution's Chief Risk Officer (CRO),[21] and ensuring the CRO has unfettered access to the Board and the Committee; and
       (f)           oversight of the appointment and removal of the CRO.
85.         The Board Risk Committee is required to provide prior endorsement for the appointment or removal of the institution's CRO. If the CRO is removed from their position, the reasons for removal must be discussed with APRA as soon as practicable, and no more than 10 business days, after the Committee's endorsement is agreed upon.
86.         The Board Risk Committee must have