Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) In this regulation:
material risk means a risk to a registrable superannuation entity that has the potential, if realised, to:
(a) adversely affect the interests of members or beneficiaries of the entity; or
(b) have a significant impact on the business operations, reputation, rate of return, profitability or net assets of the entity.
(2) For paragraph 29P (2) (c) of the Act, the following matters are prescribed:
(a) any material risk (a relevant material risk ) that is relevant to the registrable superannuation entity;
(b) an assessment of each relevant material risk, taking into account:
(i) the likelihood of the risk being realised; and
(ii) the consequences for the entity if the risk is realised;
(c) the way in which the RSE licensee proposes to treat each relevant material risk, including:
(i) the proposed risk response strategy or strategies for the risk; and
(ii) the measures and procedures that the RSE licensee proposes to apply to address the risk;
(d) an assessment of the residual risk for each relevant material risk, having regard to:
(i) the assessment of the relevant material risk under paragraph (b); and
(ii) the likely effect of the proposed treatment of the relevant material risk under paragraph (c);
(e) the proposed arrangements for internal oversight, implementation and reporting in relation to the management of the relevant material risks by the RSE licensee.
Note A registrable superannuation entity will not be registered unless APRA is satisfied that the risk management plan for the entity meets the requirements of section 29P of the Act: see paragraph 29M (1) (d) of the Act.