The Australian Prudential Regulation Authority (APRA) has retired two outdated practice guides on risk management frameworks for general and life insurers. 

It says the removal of Prudential Practice Guide GPG 250 Balance Sheet and Market Risk and Prudential Practice Guide LPG 250 Asset and Liability Management Risk is part of its Modernising the Prudential Architecture initiative to improve guidance, ensuring it is relevant and up to date. 

GPG 250 was created in 2006 and LPG 250 in 2007. Both guides cover elements that would typically be included in a risk management framework. 

“APRA considers that these [guides] have served their initial purpose of explaining basic concepts to help uplift industry practice, but are now no longer needed,” the regulator said in a letter to insurers. 

“APRA’s expectations regarding risk management, including those risks considered in GPG 250 and LPG 250, are set out in Prudential Standard CPS 220 Risk Management.” 

CPS 220, which was last revised in July 2019, applies to all APRA-regulated institutions. It mandates that each group must maintain a risk management framework that is appropriate to its size, business mix and complexity.