Commonwealth Bank of Australia (CBA) today released Promontory Australasia’s first independent report into the progress of CBA’s Remedial Action Plan.
The Remedial Action Plan was designed to address all of the recommendations of APRA’s Prudential Inquiry into CBA released in May, with the goal of strengthening governance, culture, accountability and customer outcomes.
The report provides an update on actions CBA has taken to execute against the Remedial Action Plan to 31 August 2018.
In its report, Promontory describes the design and management of the Remedial Action Plan program of work, and notes CBA’s commitment to implementing the Inquiry’s recommendations in a timely and comprehensive way. Promontory indicates it will be closely monitoring CBA’s ability to maintain momentum due to the size and complexity of the changes to be implemented.
Commonwealth Bank Chief Executive Officer Matt Comyn said: “We have embarked on a significant program of change and we are making progress. We understand there is still a lot to do and remain committed to implementing our plan in full and on time.
“We recognise that ultimately, we will be judged by the improvements we make in customer and risk outcomes,” Mr Comyn added.
To ensure that CBA remains focused on making these changes, all senior leaders1 have 20-30% of their performance metrics tied to the successful delivery of the Remedial Action Plan milestones for the current financial year.
Promontory’s initial report can be viewed here. The next report will be released in December 2018.
1 General Manager and above
- On 1 May 2018, APRA released a report that laid out shortcomings in governance, culture and accountability at CBA.
- The report was constructive and fair and we accepted all of the 35 recommendations.
- Work is underway as part of our Remedial Action Plan to improve how we run our business, manage risk and work with regulators. It includes:
- Strengthening governance and oversight
- Achieving better customer and risk outcomes
- Building a more accountable, customer-focused, and transparent culture
- Taking a proactive approach to risk
- Improving execution and delivery
- CBA committed to report publicly on its progress against the Remedial Action Plan.
- Promontory Australasia was appointed as the independent reviewer to provide regular reviews of progress against committed milestones with APRA.