APRA released the findings of its sixth biennial survey of regulated entities and “Knowledgeable Observers,” such as auditors, actuaries, and industry associations. The survey found that the regulatory and supervisory approaches of APRA are having a positive impact on risk management and culture in the banking, insurance, and superannuation industries. Nearly 280 regulated entities and 70 knowledgeable observers responded to this 2019 Stakeholder Survey, which was conducted online by Orima Research.
Although the overall results were positive, the survey picked up a slight downward trend in overall perceptions of APRA compared to the 2017 survey. The survey highlighted industry concern about the costs of regulatory compliance, identified that a third of respondents thought APRA collected too much statistical data, and indicated that entities were placing less importance on the harmonization of the prudential framework across regulated industries. The following are the additional key findings of the survey:
- More than 90% of regulated entities believe that APRA supervision helps to protect both their industry and the Australian community, consistent with previous stakeholder surveys, with a similar proportion of entities reporting that supervision by APRA has had a positive impact on their risk management practices
- 86% believe the increased focus on risk culture has had a positive impact on their entity
- 81% believe APRA is effective in identifying risks across their industry
- 86% believe that APRA supervision enhances the financial and operational strength of their entity
- 92% agree that public communications by APRA are clear and effective
Keywords: Asia Pacific, Australia, Banking, Insurance, Pensions, Superannuation, Risk Management, Biennial Stakeholder Survey, APRA
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