APRA has released a draft Prudential Standard on Business Continuity Management (BCM) for authorised deposit-taking institutions, general insurers and life insurance companies (regulated institutions) for public consultation.
Under the proposed Standard, regulated institutions would be required to:
- identify, assess and manage potential business continuity risks to ensure they can continue to meet their financial and service obligations to depositors and policyholders in the event of a material disruption to business operations;
- undertake regular reviews of their BCM framework, including periodic testing and maintenance of their business continuity plan.
Comment on the draft standard is invited by 30 September 2004.