Banking, Insurance, Life Insurance and Health Insurance (prudential standard) determination No.1 of 2019
Risk management declarationRisk management declaration
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Risk management declaration
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The Board of an APRA-regulated institution must make an annual declaration to APRA on risk management of the institution (risk management declaration) that must satisfy the requirements set out in Attachment A to this Prudential Standard. The declaration must be signed by the chairperson of the Board and the chairperson of the Board Risk Committee. In the case of a Category C insurer, foreign ADI, or EFLIC, the risk management declaration must be signed by the senior officer outside Australia or two members of the Compliance Committee, as relevant.
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The Board of an APRA-regulated institution must qualify the risk management declaration of the institution if there has been any significant breach of, or material deviation from, the risk management framework or the requirements set out in Attachment A to this Prudential Standard. Any qualification must include a description of the cause and circumstances of the qualification and steps taken, or proposed to be taken, to remedy the problem.[10]
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Unless otherwise approved by APRA, an APRA-regulated institution must submit the risk management declaration of the institution to APRA:
(a) within four months of its annual balance date if it is an ADI or authorised banking NOHC that is not a disclosing entity within the meaning of the Corporations Act 2001;
(b) within four months of its annual balance date if it is a Level 3 Head; or
(c) for all other APRA-regulated institutions, within three months of its annual balance date.