The package proposes harmonised risk management requirements for authorised deposit-taking institutions (ADIs), general insurers, life insurers, single industry groups (Level 2 groups) and conglomerate groups (Level 3 groups). The package includes a discussion paper, a draft new cross-industry risk management prudential standard and an updated cross-industry prudential standard on governance.

The proposed cross-industry CPS 220 consolidates existing risk management standards for insurers and includes some risk management requirements for ADIs that are currently spread across a number of ADI prudential standards, it will not apply to superannuation.  

APRA’s heightened expectations on risk management are reflected in proposed enhancements to the existing requirements in Prudential Standard CPS 510 Governance. Submissions on the proposed cross-industry risk management prudential standard (CPS 220) and the updated governance prudential standard (CPS 510) are due by 5 July 2013.