Governance Briefing — APRA CPS 190 recovery and exit planning
Australian APRA-regulated institutions must comply with Prudential Standard CPS 190 from 1 January 2025, requiring boards to oversee recovery planning, exit options, and critical operations continuity.
Executive briefing: The Australian Prudential Regulation Authority finalised Prudential Standard CPS 190: Recovery and Exit Planning in July 2023. The standard applies from 1 January 2025 to banks, insurers, and superannuation trustees. Boards must approve recovery plans, define triggers, oversee exit planning, and ensure governance over scenario testing, playbooks, and communication strategies.
Key governance signals
- Board accountability. Boards are responsible for the overall recovery and exit planning framework, including annual reviews and testing.
- Scenario governance. Institutions must run severe but plausible scenarios, document decision-making, and track remediation actions.
- Communication planning. Boards must ensure stakeholder communication strategies cover regulators, customers, counterparties, and media.
Action checklist
- Update board and committee calendars to review recovery plans, triggers, and testing outcomes before the effective date.
- Align recovery governance with CPS 230 operational risk requirements to avoid duplication.
- Validate data, systems, and documentation supporting recovery options, capital actions, and exit strategies.
Enablement moves
- Run cross-functional simulations involving board members, senior executives, and regulators to test decision-making.
- Develop dashboards tracking trigger metrics, scenario results, and remediation progress.
- Integrate recovery and exit planning artefacts with crisis management and resolution packs.
Sources
- APRA CPS 190 — Recovery and Exit Planning
- APRA news release — Recovery and exit planning requirements
Zeph Tech supports APRA-regulated entities with recovery governance, scenario design, and board reporting to meet CPS 190.