The Australian Prudential Regulation Authority (APRA) has published a speech delivered this afternoon by Executive Director of Cross-industry Risk Chris Gower to the AFIA Risk Summit on the Gold Coast.
In “Preparing for the long haul: operational resilience in a shifting geopolitical environment”, Mr Gower described how a “perfect storm” of converging risks was creating significant operational resilience challenges that businesses needed to be ready to manage.
His comments included:
- “For financial sector entities, operational risks if poorly managed can quickly escalate to a loss of confidence and trust and could ultimately threaten the financial viability of the entity. Well-prepared entities will be those that have invested ahead of time in their resilience and have the capability to respond to events in a manner that retains the trust of key stakeholders.”
- “APRA and industry have invested considerable time engaging on the new prudential standard CPS 230 Operational Risk Management, which will go-live less than two weeks from now on the first of July. CPS 230 works to ensure that banks, insurers and superannuation funds have a comprehensive understanding of their supply chain vulnerabilities and develop contingency plans to mitigate potential disruptions.”
- “Entities should be deliberate in the steps taken to understand how shifts in the geopolitical environment may impact their risk profile. Under CPS 230, entities are expected to conduct scenario planning for a range of events, including geopolitical shocks, cyber incidents, and natural disasters.”
The full speech is available on the APRA website at:
