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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.

To help shape the future of giving in Australia, the Productivity Commission recently released a draft report that dives into the current state, challenges, and opportunities in the philanthropy space. The report underscores the significance of philanthropy and volunteering in fostering social capital, trust, and innovation in the community sector, while addressing challenges with a view to unlock its full potential.

Outsourced CFO services can help scale up businesses, domestic established businesses and international subsidiaries with the demands of doing business

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.

This analysis of Australian mid-sized manufacturers has shown a positive outlook, with average year-on-year sales growing by 6.7 per cent in 2023. This growth can predominantly be attributed to increased capital expenditure and investing into emerging technologies. The outlook is particularly promising for business with revenue over $100m, whose scale has supported ongoing success through stronger forecasting linked to better pricing agreements and growing market shares due to their steady inventory.

When the AASB issues a new or revised Standard (or an Interpretation) with an effective date after the end of the reporting period, an entity has two choices.

This week, the Australian Prudential Regulation Authority (APRA) finalised new requirements to Prudential Standard CPS 511 Remuneration, which will significantly impact authorised deposit-taking institutions (ADIs), insurers, and superannuation entities. This new standard requires APRA-regulated entities to publish details around their remuneration frameworks, design, governance, and outcomes. These changes come in an effort to create more transparency and improve risk management, in particular in the context of the poorly designed and executed remuneration frameworks exposed through the financial services Royal Commission.

To ensure effective integration and outputs, alongside financial viability of new renewable projects, developers, owners, asset managers, energy retailers and investors need to understand the impacts for new and existing projects caused by grid congestion and supply and demand fluctuations.

APRA-regulated businesses operating in the banking, insurance, and superannuation industries will soon be faced with significant regulatory changes. APRA and the ASIC have commenced early consultation around the introduction of the Financial Accountability Regime, which aims to establish a strong accountability framework to enhance risk management and governance practices in the financial sector.

APRA has released the long-awaited findings from its independent tripartite cyber assessment over compliance with CPS 234. The themes identified by APRA are based on the audit of more than 300 banks, insurers and superannuation trustees – a significant industry wide program.

There have been some recent developments in the Australian market in relation to mandatory sustainability reporting, which is likely to significantly impact most companies required to prepare general purpose financial reports.