Superannuation (prudential standard) determination No. 2 of 2012 - Prudential Standard SPS 220 - Risk 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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An RSE licensee must at all times have a risk management framework to appropriately manage the risks to its business operations.[2]
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For the purposes of this Prudential Standard, the risk management framework is the totality of systems, structures, policies, processes and people within an RSE licensee’s business operations that identify, assess, manage, mitigate and monitor all internal and external sources of inherent risk that could have a material impact on the RSE licensee’s business operations or the interests of beneficiaries (material risks).[3]
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The Board of the RSE licensee (the Board) is ultimately responsible for the risk management framework.[4]
- The Board is ultimately responsible for maintaining the solvency of the RSE licensee and ensuring that the RSE licensee’s business operations have adequate resources to undertake the activities for which it holds an RSE licence.