Risk management

Before we can grant you a credit licence, you must demonstrate that you have adequate risk management systems (unless you are a body regulated by APRA).

For guidance on what we consider to be adequate risk management systems, see Section D of RG 205. Your systems should be appropriate to the nature, scale and complexity of your business.

Unless you are a body regulated by APRA, you will be asked a group of questions that are designed to obtain your confirmation that you have, or will have from the date your licence starts (if it is granted), adequate systems, including whether:

  • you have, or will have, documented processes to identify, analyse, evaluate, treat and communicate risks in your business, and to monitor and report on risk management issues;

  • you have assessed, or will assess, the risks associated with your business and the probability of those risks occurring; and

  • relevant representatives are, or will be, provided with risk management training.

If you indicate that your risk management processes will not include the identification, analysis, evaluation, treatment and communication of risks associated with your credit business, you will not be able to continue with the application because you would not meet the minimum requirements to be granted a credit licence.


This information comes from Regulatory Guide 204.

Last updated: 20/10/2014 12:00