Insurance (prudential standard) determination No. 1 of 2006 - Prudential Standard GPS 220 - Risk Management
Risk Management DeclarationRisk Management Declaration
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Risk Management Declaration
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The Board must provide APRA with a declaration on risk management (Risk Management Declaration) signed by two directors or, in the case of a foreign insurer, the senior officer outside Australia with delegated authority from the Board. This declaration is set out in Attachment A to this Prudential Standard.
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The Risk Management Declaration must be submitted to APRA on, or before, the day that the insurer’s yearly statutory accounts are required to be submitted to APRA under the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act).
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If the Board qualifies the Risk Management Declaration, the qualified Risk Management Declaration must include a description of any material deviation from the insurer’s obligations, and the steps taken, or proposed to be taken, to remedy those breaches.
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Where the risk management framework covers the insurance group as a whole and APRA has not made a determination under paragraph 21, an insurance group may submit to APRA:
(a) a Risk Management Declaration in respect of the insurance group, where it is practical to provide a single over‑arching Risk Management Declaration for that insurance group; or
(b) a Risk Management Declaration for each insurer in the insurance group.
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A single Risk Management Declaration for the insurance group, as referred to in subparagraph 28(a), must adequately consider and deal with the risk management framework applicable to each insurer in the insurance group as required by this Prudential Standard.
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Where APRA has made a determination under paragraph 21 or where APRA is of the view that the insurance group Risk Management Declaration does not adequately address the risk management framework applicable to each insurer in the group, or that a separate Risk Management Declaration is desirable to ensure that the requirements of this Prudential Standard are met, APRA may, in writing, do either or both of the following:
(a) require one or more insurers within the insurance group to prepare and submit to APRA a separate Risk Management Declaration;
(b) require the preparation and submission to APRA of a Risk Management Declaration for a different insurance group within the corporate group;
within a reasonable time specified by APRA.