APRA Issues Geopolitical Risk Preparedness Expectations for Financial Entities

On June 17, 2026, APRA announced minimum expectations for banks, insurers, and superannuation trustees to enhance readiness against geopolitical shocks. The regulator highlighted that geopolitical risks threaten the safety and resilience of financial entities and their ability to provide critical services. APRA identified six key areas requiring industry-wide improvements, including monitoring capabilities and crisis preparedness. The Council of Financial Regulators (CFR) has engaged with large financial institutions over the past 18 months to assess potential impacts from geopolitical events. APRA's expectations aim to ensure that entities integrate geopolitical risk into their governance and risk management practices. While financial resilience in Australia remains strong, the evolving geopolitical environment necessitates urgent action. APRA will conduct targeted readiness assessments for larger entities with heightened exposure to these risks.

Key Points: • APRA has set minimum expectations for financial entities to prepare for geopolitical shocks. • Six key areas for improvement include monitoring capabilities and crisis preparedness. • APRA will conduct targeted assessments for larger entities to ensure compliance with new expectations.