APRA is shaking up its structure to tackle rising financial risks.

The Australian Prudential Regulation Authority (APRA) has unveiled a significant reorganisation of its internal structure, aimed at enhancing its ability to manage risks within an increasingly complex financial landscape. 

This move, detailed in APRA’s 2024-25 Corporate Plan, seeks to streamline operations and improve efficiency.

Beginning 2 September 2024, APRA will consolidate its existing three frontline supervision divisions into two. 

The new structure will see the creation of a General Insurance and Banking division and a Life Insurance, Private Health Insurance and Superannuation division. 

This change reduces the number of frontline supervision divisions from three to two, a move APRA claims will improve decision-making processes at a time when global financial risks are rising.

Additionally, APRA will merge its financial and non-financial risk teams into a new Cross-industry Risk division. 

This division, alongside teams dedicated to systemic risk work, is intended to serve as a centre of excellence for risk specialists. 

According to APRA, the reorganisation will facilitate better knowledge transfer and cross-skilling opportunities, ultimately enabling a more comprehensive view of risks across industries.

While the reorganisation may streamline operations at the executive level, APRA has assured that the teams responsible for industry-specific supervision and engagement with regulated entities will remain intact. 

The reorganisation also comes amid broader concerns about the capacity of regulators globally to keep pace with rapid changes in the financial sector, particularly in the context of emerging risks such as cyber threats and the increasing complexity of financial products.

APRA’s updated organisational chart, reflecting these changes, is now available for public viewing.

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