Risk management strategy

29. An APRA-regulated institution must maintain an RMS for the institution that addresses each material risk listed under paragraph 26. The RMS must be approved by the Board.

30. The RMS is a document that describes the strategy for managing risk and the key elements of the risk management framework that give effect to this strategy. At a minimum, an RMS must:

(a) describe each material risk identified, and the approach to managing these risks;

(b) list the policies and procedures dealing with risk management matters;

(c) summarise the role and responsibilities of the risk management function;

(d) describe the risk governance relationship between the Board of the APRA-regulated institution, board committees of the APRA-regulated institution and senior management of the institution with respect to the risk management framework; and

(e) outline the approach to ensuring all persons within the institution have awareness of the risk management framework as it relates to their role and for instilling an appropriate risk culture across the institution.