Banking, Insurance, Life Insurance, Health Insurance and Superannuation (prudential standard) determination No. 1 of 2023
Testing and reviewTesting and review
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Testing and review
- Unless APRA determines otherwise, an APRA-regulated entity must review and update its recovery and exit plan:
(a) for an SFI, at least annually; and
(b) for a non-SFI, at least every three years.
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An APRA-regulated entity must review and update its recovery and exit plan to reflect any significant changes in legal or organisational structure, business mix, strategy or risk profile.
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An SFI must undertake a comprehensive review at least every three years of the effectiveness of the recovery and exit plan and its readiness and capabilities to execute it. The comprehensive review must be conducted by operationally independent, appropriately experienced and competent persons.
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As part of the comprehensive review, an SFI must conduct operational testing to simulate the use of the recovery and exit plan. This must involve a test of the governance arrangements, communication plan, operational elements of key actions, and internal reporting.