Prudential Standard CPS 220 issued by APRA provides a comprehensive framework for regulated institutions in Australia to manage their risks. It outlines the obligations of boards and senior management in setting up a robust risk management framework and maintaining an independent risk management function. Key requirements include governance, board oversight, risk appetite settings, and periodic reviews of risk management processes. The standard aims to enhance the stability and soundness of financial entities under APRA's jurisdiction.
#risk management#governance#financial stability#board oversight#regulations