Australian Prudential Regulation Authority publishes draft business continuity management standard

The Australian Prudential Regulation Authority (APRA) yesterday released a draft Prudential Standard on business continuity management for authorised deposit-taking institutions, general insurers and life insurance companies. APRA is seeking public comments on the standard, which will be mandatory for regulated institutions. Such firms will have to:

* Identify, assess and manage potential business continuity risks to ensure that firms can continue to meet their financial and service obligations to depositors and policyholders in the event of a material disruption to business operations; and

* Undertake regular reviews of their BCM framework, including periodic testing and maintenance of their business continuity plan.

APRA’s chairman, Dr John Laker, said APRA has undertaken detailed assessments of regulated institutions’ business continuity arrangements for a number of years as part of its regular on-site reviews and has used this experience in formalising prudential requirements in this area.

“As business operations have become increasingly complex and vulnerable to disruption from external events, effective business continuity has become an essential component of a regulated institution’s risk management framework,” said Dr Laker.

He added, “The proposed standard will ensure that all regulated institutions adequately address their business continuity risks on an ongoing basis.”

The deadline for comments on the draft standard is 30th September 2004.

A copy of the standard is available on the APRA website at: http://www.apra.gov.au/Policy/Draft-Prudential-Standards-Business-Continuity-Management.cfm

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises.

•Date: 13th July 2004 • Region: Australia •Type: Article •Topic: BC general
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