Risk-based management strategies will be improved under a five-year corporate plan unveiled by the Australian Prudential Regulation Authority (APRA) on Friday.

Other top strategic initiatives listed in the 2016-20 plan include enhancing leadership, culture and opportunities for APRA’s people; honing governance and workplace effectiveness; and building recovery and resolution capability.

“Risk-based management refers to APRA’s approach to managing its core operations,” the prudential regulator says.

“A sound quality management framework is a key driver of organisational performance, because it goes to the heart of what it is to be effective as a prudential supervisor.

“APRA will focus effort on formalising the framework, strengthening existing controls and ensuring there is adequate, effective challenge across the organisation on core risk judgements, especially supervision, with opportunities to institutionalise better practices and knowledge sharing.”

APRA says it aims to keep the public informed on its role and plans to promote financial system capabilities and financial safety.

Budgeted expenses for the year to next June 30 are about $131.32 million, projected to rise to $137.68 million in 2017/18.

“APRA seeks to manage failures or near-failures of regulated institutions in an orderly fashion, to protect beneficiaries and minimise adverse effects on the wider economy,” the regulator says. “APRA does not pursue a ‘zero-failure’ regime.

“Rather, the objective is to maintain a low incidence of failure of regulated institutions, while not impeding continued improvements in efficiency or hindering competition.

“APRA’s aim is to identify likely failures early enough so corrective action can be initiated to prevent the failure, or at least to set in train appropriate wind-up or other exit strategies to minimise losses to beneficiaries.”