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Supervision and policy priorities

APRA’s prudential policies and supervision activities support its purpose to ensure the financial interests of Australians are protected and the financial system is stable, competitive, and efficient. 

These papers set out APRA's priorities for the next 12-18 months, which support the goal of ensuring the financial system is ‘protected today and prepared for tomorrow’.

APRA's 2023 Supervision Priorities

 

Through supervision, APRA seeks to identify and respond to significant risks to financial institutions and the financial system in a forward-looking manner. Reviews and assessments are targeted to the most significant risks identified and with a preference for preventative action.

Across all industries, APRA will further increase scrutiny of operational and cyber risk-management practices and has heightened expectations of entities’ ability to rapidly detect weaknesses and to implement remediation plans.

 

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The graphic shows the key supervision priorities for 2023, broken down by APRA’s focus on three outcomes.  * Resilient and prudently managed financial institutions: strengthened operational resilience, improved cyber resilience and strengthened board capabilities and renewal practices.  * A safe and stable  Australian financial system: enhanced maturity of recovery and exit planning, embedded capital framework, deeper understanding of climate-related financial risks and disciplined management of problem ass

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APRA's 2023 Policy Priorities

 

Looking ahead to 2023-2024, APRA’s policy priorities centre on three main objectives:

  • Modernising the prudential architecture, a core strategic initiative designed to make the framework clearer, simpler and more adaptable;
  • Completing key reforms to strenghten the financial and operational resilience of the system, and improve outcomes for superannuation members; and
  • Reviewing and rationalising core standards within the framework, including for governance and the regulation of conglomerate groups.

     

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