- Business Risk and Resilience
- Compliance and Regulation
- Risk Transformation
Business resiliency will be front-of-mind
2019 tested the resilience of organisations against a wide variety of threats. 2020 will see a continued focus on business continuity to address a range of complex threats spanning geopolitical, environmental and technological. For some organisations, this may involve re-evaluating strategies, redundancy plans and impact assessments to foster effective business continuity preparation.
Boards continue to invest in risk culture
The last 12 months have seen larger corporate organisations address aspects of their risk culture and conduct to meet regulator expectations. This momentum is expected to carry on in 2020, as Boards continue to invest in the education of the complexities of risk culture and the addressing of undesirable risk behaviours and attitudes.
AUSTRAC resources for AML/CTF mitigation
With the recent AML/CTF civil penalty orders against Westpac and CBA, AUSTRAC has released a suite of resources and checklists to help reporting entities maintain effective AML/CTF programs. Stricter enforcement will be applied to these entities to identify, disrupt and prevent money laundering and terrorism financing.
APRA raising remuneration expectations
Expectations on governance, culture, remuneration and accountability practices of ADIs, super funds and insurers will rise in 2020. As CPS 511 is finalised, APRA-regulated entities must review their remuneration arrangements in consistency with the standard. Alongside the Banking Executive Accountability Regime (BEAR), ADIs may also need to realign their accountability frameworks to this standard.
Balancing of stakeholder expectations in conduct
The Financial Services Royal Commission in 2019 highlighted that a higher standard of conduct is to be upheld by Boards and senior management. In 2020, these organisations will seek to balance shareholder interests with broader community expectations in decision making. By maintaining values of transparency, accountability and integrity, trust from the community may be regained.