5.7 — Supervision of culture and governance

In conducting its prudential supervision of APRAregulated institutions and in revising its prudential standards and guidance, APRA should:

  • build a supervisory program focused on building culture that will mitigate the risk of misconduct;
  • use a riskbased approach to its reviews;
  • assess the cultural drivers of misconduct in entities; and
  • encourage entities to give proper attention to sound management of conduct risk and improving entity governance.

Government Response

The Government supports APRA acting on this recommendation.