Climate Change - Awareness to Action | APRA
The survey found that a majority of regulated entities were taking steps to increase their understanding of the risk, including all authorised deposit-taking institutions (ADIs), general insurers and RSE licensees surveyed. One third of regulated entities viewed climate risks as material. A wide range of strategic opportunities has been identified. Climate risks are being integrated into risk management frameworks, and more sophisticated financial analysis of scenarios is gaining traction across a range of entities.
Climate change risks to Australian Businesses | Ben Scheltus for the RMIA The risk magazine

When doing your Risk Assessments, please be mindful of the physical and transition risks presented by climate change. For three years in a row, the World Economic Forum’s Global Risk Report (GRR) has called out the risks we collectively face from climate change. In the 2019 report published in February, climate change and environmental risks dominate the “high likelihood” and “high impact” quadrant of the global risk matrix. Read the article here.

Click here to view the RMIA Risk Magazine April edition. Please note the magazine is for RMIA members only.

Security Incident Response | AWS White Paper

 AWS has published a guide to assist their clients understand the basic concepts of security incident response within their AWS environment. It presents an overview of the fundamentals of responding to security incidents within a customer’s AWS cloud environment, including an overview of cloud security and incident response concepts, identifies cloud capabilities, services, and mechanisms that are available to customers for responding to security issues.  

You can download the white paper here, or click on the link below to view all AWS white papers.

APRA's Policy Priorities 2019

APRA has recently announced its priorities for 2019. Please see below excerpts that are relevant to the operational risk management and the business continuity practitioners. See here for the full report.

“Operational risk and related standards

APRA has commenced an important project to update its existing prudential standards and guidance on outsourcing, business continuity and information security, which apply to entities in the banking, insurance and superannuation industries. The objective of this initiative is to align prudential requirements with industry better practice and community expectations for a high degree of resilience to material operational risk incidents.

In conjunction with these more technical standards, APRA’s intention is to issue broad-based expectations for operational risk management and resilience that align to the overarching risk management framework. APRA will take the opportunity to streamline existing requirements where appropriate.

The first stage of this project, involving a new prudential standard on information security was finalised in late 2018, with the new standard to commence on 1 July 2019. APRA will consult on associated guidance on information security in the first half of 2019. Subsequently, requirements for operational risk management and revised standards for business continuity and outsourcing (updated to cover service provision more broadly) will be the focus of consultation over the course of 2019.”

Our reading of the tea leaves is that there could well be considerable changes to the way APRA regulates the Australian finance market in the near term. The outcome of the Hayne Royal Commission and the looming risks from climate change means that it is likely that over the next twelve months our business continuity plans may need to be thoroughly reviewed.

Companies Most Exposed to Climate Change Risk | Barrons

“We’re steadily moving toward a new normal where billion-dollar disasters are a regular occurrence,” says Emilie Mazzacurati, founder and CEO of Four Twenty Seven. “This combination of extreme weather events and growing pressure from asset owners and regulators is pushing a lot of businesses to look for a way to understand their exposure and start managing their risks.”

Business Continuity Risks Across Cloud Services | Continuity Central

Despite sensitive data being increasingly moved to the cloud, research carried out by Databarracks reveals that over 60 percent of organisations have not evaluated the business continuity risks for their cloud services over the past year.

From a survey of 400 IT professionals, only 40 percent of organisations have evaluated the business continuity risks for their cloud services in the past 12 months. 17 percent of businesses have no plans to address this over the next 12 months. Further to this, almost a quarter (23 percent) of organisations admit to not having backup or recovery capabilities in place, beyond the standard default options offered by their cloud provider.

Read more