Our latest insights

The new prudential standards for the private health insurance industry which commenced on 1 July 2023 have significantly changed how capital adequacy is determined for insurers and have been implemented to improve alignment with APRA’s insurance capital framework, consistent with international best practice.

As the CPS 234 Information Security tripartite review program nears its end in June 2024, APRA-regulated entities face a critical moment. The upcoming CPS 230 Operational Risk Management implementation is closely linked to CPS 234, requiring preparation from regulated entities and service providers.

The transition to Expected Credit Loss (ECL) modelling under AASB 9 revolutionises financial accounting. Success relies on understanding ECL principles, ensuring data quality, robust methodologies, and effective governance.

Discover APRA's proposed new guidelines on Interest Rate Risk in Banking Book (IRRBB) through APS 117, impacting non-significant financial institutions (non-SFI). Learn about key requirements, including risk management framework integration, technology capacity assessment, and data quality evaluation, ensuring compliance and effective risk management.

Read more for insights from the latest APRA statistics and ICAAP reviews highlighting the Australian banking sector's strengthened capital management. Learn key considerations for ADIs to balance risk and growth effectively, including data quality, operational risk focus, and leveraging automation.

APRA's proposed changes to ADI liquidity and capital standards have sparked discussions across the banking sector. To encourage a resilient banking future, we put forward a submission to APRA last week in response to the changes.

Grant Thornton released its SuperWomen Initiative Survey 2023 results that show the challenges women working in superannuation are facing in order to find solutions that assist breaking down some of the barriers in the industry.

In a complex operating environment, the Australian Prudential Regulation Authority (APRA) is encouraging regulated entities to prioritise quality data as a valuable asset. APRA's growing emphasis on data risk management, evident in regulatory guidance such as CPG 235, CPS 234, and CPS 230, underscores the vital role of quality data for entities under its regulation. Despite progress revealed in APRA's 100 Critical Risk Data Elements Pilot study, a significant gap persists between current and optimal data risk management practices, with potential consequences including reputational damage and financial loss.

Today, APRA shared a letter outlining their expectations regarding credit risk provisioning for ADIs. Its focus includes robust model risk management, ongoing sensitivity analysis to navigate economic fluctuations, and the development of systematic procedures for identifying and addressing sector-specific risks – particularly in the context of AASB 9 Financial Instruments.

The Financial Accountability Regime (FAR) Bill 2023 marks a pivotal transformation in financial sector oversight, affecting all APRA regulated financial entities in the banking, insurance and superannuation industries as well as their significant related entities. Jointly administered by ASIC and APRA, the FAR will replace the Banking Executive Accountability Regime (BEAR), aiming to improve risk and governance cultures by imposing a strengthened responsibility and accountability framework for those financial institutions.

Women face unique challenges when it comes to working in the superannuation industry. Grant Thornton’s SuperWomen Initiative Survey 2023 aims to better understand your experiences and expectations, the support systems you find valuable, and the pathways you envision for professional growth.

APRA has released Findings from its CPS 511 pre-implementation review which covered a total of 39 entities, the majority of which were Significant Financial Institutions (SFIs).