RISK MANAGEMENT – AUSTRALIA

New wage deals to drive up costs, RLB says

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 7-Feb-24

Consulting firm RLB expects a rising wages bill to be a major contributor to construction industry costs in 2024. The CFMEU is still negotiating new enterprise agreements for construction workers in NSW and Victoria, but Domenic Schiafone of RLB notes that building firms are already factoring in wage rises of at least five per cent into their prices. RLB says other risk factors for the construction industry in 2024 include the impact of supply-chain disruptions on access to imported building materials and rising project financing costs.

CORPORATES
RIDER LEVETT BUCKNALL PTY LTD

Regulator confident plans are in place

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Original article by Michael Roddan
The Weekend Australian – Page: 26 : 29-Feb-20

The Australian Securities & Investments Commission is working with the Australian Financial Markets Association and large institutions to ensure that the coronavirus outbreak does not stop financial markets from remaining open. ASIC chairman James Shipton notes that it has a pandemic response plan in place, while ASIC’s executive director of markets Greg Yanco says the economic impact of the virus is uncertain. Shipton says ASIC has set up an internal working group to monitor the potential threat that the coronavirus poses and to work with other regulators.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED

CBA lacked resources to deal with data crisis

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Original article by James Frost
The Australian Financial Review – Page: 13 & 16 : 6-Jun-18

The minutes from a meeting of the Commonwealth Bank of Australia’s data governance committee in August 2016 have been submitted to the banking royal commission. They show that CBA executives were aware that insufficient funding was being allocated to data management, and 118 data quality issues had been identified. Chief risk officer David Cohen told the meeting that improving the quality of credit data was a priority, in order to satisfy the Australian Prudential Regulation Authority’s concerns about the quality of the data.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

CBA’s risk overhaul could take five years, inquiry told

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Original article by James Frost
The Australian Financial Review – Page: 8 : 31-May-18

The Commonwealth Bank of Australia’s risk management practices came under scrutiny by the banking royal commission on 30 May. Chief risk officer David Cohen conceded that the bank’s risk function is still inadequate and warned that changes to its risk management systems will not be fully implemented for up to five years. He also expressed the view that CBA needs to "return to the basics" with regard to its risk function.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANKWEST, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

CBA stung: pay cuts for executives

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Original article by Andrew White
The Australian – Page: 1 & 6 : 2-May-18

The Commonwealth Bank of Australia will implement all 35 recommendations of an independent panel that was commissioned to examine its governance, culture and accountability. CEO Matt Comyn says the bank has already made a number of changes since the report was commissioned by the Australian Prudential Regulation Authority in the wake of Austrac’s money-laundering investigation. Amongst other things, senior executives will not receive bonuses and some have agreed to a pay cut.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

APRA to unveil CBA report this week

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 30-Apr-18

An independent panel has spent more than six months examining the Commonwealth Bank’s governance and culture on behalf of the Australian Prudential Regulation Authority. The panel, which consists of corporate director Jillian Broadbent, former Australian Competition & Consumer Commission chairman Graeme Samuel and former APRA chairman John Laker, is due to report its findings to APRA on 30 April, with APRA to make the findings public in the next few days. It is likely that the panel will be critical of a lack of emphasis on risk culture at the bank, and of its investments in risk systems.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Building boom in risky areas

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Original article by Michael Bleby, Matthew Cranston
The Australian Financial Review – Page: 1 : 5-Jan-17

Apartment buildings due for completion in 2017 and 2018 are often located in postcodes which are considered as risky by lenders. A study of Rider Levett Bucknall’s crane index in the September 2016 quarter indicates that about 38 per cent of cranes were located in such areas. Brisbane’s apartment scene is particularly problematic, with nearly 57 per cent of all cranes located in areas of restricted lending.

CORPORATES
RIDER LEVETT BUCKNALL PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, REALTY BASE GROUP, CHARTER KECK CRAMER, JONES LANG LASALLE AUSTRALIA PTY LTD, METRO PROPERTY DEVELOPMENT PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Super trustees ‘fail to act’ on liquidity risks

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 21-Dec-16

The Australian Prudential Regulation Authority has expressed concern that many trustees of superannuation funds are not using the results of liquidity stress testing when making investment decisions. APRA has noted that while super funds have made progress with regard to liquidity stress testing, further improvement is needed. Rice Warner adds that Australia’s ageing population presents a major liquidity risk for super fund trustees.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Natural disasters a threat to billions of dollars of GDP

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Original article by Sally Patten
The Australian Financial Review – Page: 27 : 8-Nov-16

The Federal Government has been urged to spend more money on mitigating the risks associated with natural disasters. SGS Economics & Planning and Insurance Australia Group estimate that 11 per cent of national GDP is at risk of being affected by bushfires, while cyclones pose a threat to 20 per cent of GDP. Disaster relief dominates in government spending on natural disasters, while only three per cent is spent on mitigation.

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SGS ECONOMICS AND PLANNING PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

Chi-X accuses ASX of freezing the market

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Original article by Vesna Poljak, Jessica Sier
The Australian Financial Review – Page: 13 & 18 : 22-Sep-16

ASX Limited has been accused of mismanaging an outage which occurred on 19 September 2016. The exchange operator put the market in "enquire" mode, thus preventing stockbrokers from cancelling their open orders on the ASX and executing them at rival exchange Chi-X Australia. John Fildes, the CEO of Chi-X, said the ASX should have put the market in "adjust" mode, which is less restrictive.

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, TABB GROUP INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY