APRA conducted a multi-year study on banks’ data management practices, identifying gaps and offering six recommendations for improvement.
The study, initiated in 2019, examined data risk management among banks by evaluating 100 Critical Risk Data Elements (CRDE) and conducting subsequent reviews.
The results showed that although there have been some recent improvements in data practices, progress in enhancing these practices has been slow.
APRA’s suggestions include establishing data governance, clarifying roles for data ownership, simplifying technology infrastructure, identifying critical data elements, monitoring data quality, and integrating data risk into management frameworks. The regulator highlighted the importance of data in decision-making and urged directors and executives to prioritise data protection.
APRA intends to continue focusing on data risk management through its guidelines and emphasises the need for entities to prioritise identifying critical data elements, remediating data issues, enhancing technology platforms, and making data more accessible and accurate.
The regulator stressed the importance of streamlining processes, automating controls, and improving data quality to meet the increasing demand for data from customers, clients, and regulators.
Similar assessments were also extended to life insurers and superannuation companies to better understand their risk practices, following concerns about incorrect regulatory submissions.
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APRA is the Australian Prudential Regulation Authority, established 25 years ago as an independent statutory authority that supervises institutions across banking, insurance, and superannuation sectors and is accountable to the Australian Parliament. You can find our more about APRA.