Banking, Insurance and Life Insurance (prudential standard) determination No. 2 of 2014 - Prudential Standard CPS 232 - Business Continuity Management
The role of the Board and senior managemThe role of the Board and senior management
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The role of the Board and senior management
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A regulated institution must identify, assess, manage, mitigate and report on potential business continuity risks to ensure that it is able to meet its financial and service obligations to its depositors, policyholders and other creditors.
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The Board is ultimately responsible for the business continuity of the regulated institution. The Board remains responsible for business continuity management (BCM) whether or not business operations are outsourced or are part of a corporate group.[5]
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The Board may delegate day–to-day operational responsibility for BCM to a responsible committee, including a responsible committee of the Head of the Level 2 group, and/or senior management. The operational responsibility must be clearly expressed in the charter of the committee and/or in the performance objective of the responsible senior management.
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The Board must approve the regulated institution’s Business Continuity Management Policy (BCM Policy) (refer to paragraphs 20 and 21).
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The Board must ensure that the regulated institution’s business continuity risks and controls are taken into account as part of its overall risk management strategy and when completing a risk management declaration required to be provided to APRA.[6]