APRA is finally addressing one of the biggest lessons learned from the GFC: the failure of firms to plan for the worst while still expecting public support to ride out a crisis.
To fix this situation, APRA has introduced new recovery and exit planning requirements to ensure that regulated businesses make plans to rebuild their financial resilience or exit before they become non-viable. These requirements are contained in two new standards: CPS190 Recovery and Exit Planning (CPS190); and CPS 900 Resolution Planning, and are accompanied by relevant Prudential Practice Guides.
In this article, we provide a summary of CPS190 and also learn from the experience of those who have been through these kinds of situations before.
