The Australian Prudential Regulation Authority (APRA) has published its updated Corporate Plan for 2019-2023 with a sharpened focus on regulating non-financial risks and improving outcomes for superannuation members.

The Corporate Plan sets out a roadmap for reinforcing APRA’s strong track record of safeguarding financial stability, while lifting its capabilities in other key areas to better address emerging and future challenges.

The content of the plan has been influenced by the findings of six separate reviews and inquiries over the past 18 months that examined aspects of APRA’s regulatory approach and performance, including the financial services Royal Commission and recent Capability Review.

APRA’s new Corporate Plan has identified four areas of strategic focus aimed at strengthening outcomes for the Australian community:

• maintaining financial system resilience;
• improving outcomes for superannuation members;
• improving cyber-resilience across the financial system; and
• transforming governance, culture, remuneration and accountability across all regulated financial institutions.

APRA chairman 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.

“The new Corporate Plan acknowledges increased expectations of APRA, and fulfils the recommendations of the Royal Commission and Capability Review. Amongst other things, we will place greater emphasis on the supervision of ‘non-financial risks’ such as culture and accountability, and take a “constructively tough” enforcement approach when breaches of our prudential standards occur.”