The Australian Prudential Regulation Authority (APRA), the country’s financial regulator, is planning to step up regulation of non-financial risks such as culture and accountability as part of its 2019-2023 corporate plan.
The move follows various reviews into the performance of the country’s financial sector, including the royal commission that revealed several irregularities at the country’s big banks.
APRA said: “Collectively, the reviews recognised that APRA has been successful in delivering on its core mandate: the financial safety of its regulated institutions and a sound and resilient financial system.
“However, they also bring to the fore the need for APRA to continue to step beyond its traditional areas of focus and respond to an operating environment that is rapidly evolving and becoming increasingly complex.”
The ultimate objective of the strategic plan is to boost financial system resilience, including cyber-resilience.
In particular, the watchdog plans to enhance risk-based supervision, resolution capability, external engagement and collaboration to attain its goal.
APRA chair Wayne Byres said: “Australia’s financial system remains in good health, but we can’t take that for granted.
“As macroeconomic and geopolitical risks play out, as technological innovation transforms the industry, and as new risks such as cyber and climate change grow, we must have the right skills and resourcing to continue protecting bank depositors, insurance policyholders and superannuation members.”