- Business Risk and Resilience
- Compliance and Regulation
- Risk Transformation
Notable risk headlines, compliance breaches and regulatory changes
Financial Services Royal Commission
76 recommendations put forth to tackle issues across banking, financial advice, superannuation, insurance, culture, governance, remuneration, and regulators.
Over $6b to be spent in relation to compensation and remediation by Australia’s Big Four Banks:
- CBA: $2.2b
- NAB: $2b
- ANZ: $1.2b
- WBC: $1.1b
- AUSTRAC: Applied civil penalty orders against a big four bank on the basis of 23m breaches of the AML/CTF Act.
- ACC: Penalised major Telco $6.4m for misleading customers.
- PAY ID: Suffered two security breaches affecting up to 100k users per event.
- BRITISH AIRWAYS: Suffered a data breach affecting 500,000 customers, and faced a $329m fine under GDPR.
- CPS 234: As of 1 July 2019, the Prudential Standard CPS 234 is effective. This standard specified heightened requirements for cyber security for all APRA-regulated entities.
- CPS 511: On 23 July 2019, a discussion paper on the Prudential Standard CPS 511 on Remuneration was released. This draft standard sets out heightened expectations surrounding remuneration governance for APRA-regulated entities.
APRA’s Climate Change Survey
The survey observed that the effects of climate change are being considered a major financial risk, given the impact of natural disasters, reputational damage and regulatory change.
Companies such as those in insurance are taking interest in climate change risk, due to its impact on policy pricing and reserving.
Link to the information paper: https://www.apra.gov.au/sites/default/files/climate_change_awareness_to_action_march_2019.pdf