APRA had ruled Westpac had an “immature and reactive risk culture” when it undertook a review into the bank’s governance.
As a result, the regulator slapped the bank with an enforceable undertaking (EU) last December, requiring Westpac to build on its previous attempts at building risk programs. APRA insisted the program would need to be more integrated and holistic.
Westpac was required to have a detailed plan outlining all major remediation activities related to risk governance, with clear timelines and names of individuals accountable for delivery.
The bank has said its plan has commitments to strengthen all aspects of its governance across financial and non-financial risk.
It confirmed APRA approved the plan this week, after the bank had submitted it in late February.
The new program has also received independent assurance, from reviewer Promontory Australasia, which has also released its first biannual report on Westpac’s progress.
Westpac chief executive Peter King commented the plan is a “critical part” of the bank’s strategy and is one of his top focus areas.
“We have made progress on improving our management of risk over the past 12 months, however there is much more work to do to ensure sustainable change,” Mr King said.
However, the bank copped another regulatory hit on Thursday, as ASIC launched a civil action against Westpac over consumer credit insurance.
