APRA Unveils 2024-25 Corporate Plan with Focus on Resilience and Risk Management

APRA has released its latest Corporate Plan, outlining a comprehensive strategy that aims to provide stability to Australia’s financial landscape over the next four years

The Australian Prudential Regulation Authority (APRA) has released its latest Corporate Plan, outlining a comprehensive strategy that aims to provide stability to Australia’s financial landscape over the next four years.

This plan, for the first time, integrates APRA’s annual policy, supervision, and data priorities into a single document.

One of the primary goals of the 2024-25 Corporate Plan is to reinforce bank capital and liquidity standards, drawing lessons from last year’s global banking turmoil. APRA also intends to introduce more stringent operational resilience standards through the implementation of the new Prudential Standard CPS 230 Operational Risk. Additionally, there will be a heightened focus on raising industry standards for cyber risk management, reflecting the increasing digital interconnectedness of the financial sector.

APRA’s Chair, John Lonsdale, emphasised the importance of these measures, particularly in the context of current global uncertainties.

"At a time of considerable geopolitical volatility and with an uncertain economic outlook, it’s vital that banks, insurers, and superannuation trustees are prepared for whatever potential challenges could arise," Lonsdale said.

The plan also highlights APRA’s commitment to addressing climate-related financial risks, as well as partnering with stakeholders to reduce the protection gap for household insurance. Furthermore, APRA will work closely with the Australian Securities and Investments Commission (ASIC) to ensure that superannuation trustees comply with the retirement income covenant.

Internally, APRA plans to leverage additional funding from the 2024-25 Federal Budget to bolster its data collection and analysis capabilities. This will support APRA’s ongoing investment in its workforce to ensure it remains equipped to navigate an increasingly complex and rapidly evolving financial landscape.

The full details of the 2024-25 Corporate Plan are available on APRA’s website.