The Australian Prudential Regulation Authority has announced it will roll out its risk culture survey to up to 60 more entities over the next 12 months.
“The survey is a key initiative that supports APRA’s expanded supervisory toolkit designed to transform governance, risk culture, remuneration and accountability (GCRA) practices across regulated entities,” APRA said.
A pilot of the survey involving 10 general insurance entities was originally conducted between March and April this year.
APRA developed approximately 40 questions in alignment with its Risk Culture 10 Dimensions that were sent to about 11,600 potential respondents, with an average response rate of 62 per cent.
Risk governance and controls, decision-making and challenge, and responsibility and accountability were the three lowest-scoring dimensions of the pilot survey.
“These results help surveyed entities identify priority areas that may warrant additional focus within their organisations,” APRA explained.
“APRA has found the pilot risk culture survey to be a rich source of insights. APRA supervisors will consider an entity’s survey results, together with other supervisory information, in order to strengthen their assessment of a regulated entity’s risk culture.”
The survey will roll out to select banking entities in Q4 2021, insurance entities in Q1 2022 and superannuation entities in Q2 2022.
“APRA is one of the only regulatory bodies worldwide that directly collects survey data at an industry level, so APRA’s risk culture survey represents internationally leading regulatory practice,” APRA said.
