The Remedial Action Plan was designed to address all of the recommendations of APRA’s Prudential Inquiry into CBA released in May 2018, with the goal of strengthening governance, culture and accountability. The report provides an update on actions CBA has taken to execute against the Remedial Action Plan to 30 November 2018.
In its report, Promontory noted the Remedial Action Plan program of work remains on track, and that momentum was maintained during the reporting period. It also noted that CBA’s commitment to implementing the Inquiry’s recommendations in a timely and comprehensive way continued to be strong with all 154 milestones on schedule to be delivered by the due dates set out in the Remedial Action Plan.
As of the 30 November 2018 update, CBA had submitted 24 milestones to Promontory¹. Eighteen were assessed as ‘complete and effective’; the assessment of the remaining six is underway. As noted in CBA’s 1H19 financial results update, CBA had submitted a total of 43 milestones to the Independent Reviewer for assessment as of 31 December 2018.
Promontory noted that CBA needed to maintain this momentum and ensure execution is effective.
Commonwealth Bank Chief Executive Officer Matt Comyn said: “We’ll continue to focus on delivering the plan and maintaining momentum to make CBA a simpler, better bank for our customers.
“Examples of progress we made in 2018 include elevating the importance of risk management by establishing a Non-Financial Risk Committee at the executive level. We also clarified what we expect of our people through our purpose, values expectations and Code of Conduct, and more closely linked leaders’ remuneration with their management of risk. Senior leaders have a significant proportion of their performance metrics tied to the successful delivery of the Remedial Action Plan milestones.”
Promontory’s report can be accessed on the CBA Newsroom. CBA will report on progress against the plan twice a year. The next update will be in August 2019.
- On 1 May 2018, APRA released a report outlining 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:
o strengthening governance and oversight
o achieving better customer and risk outcomes
o building a more accountable, customer-focused, and transparent culture
o taking a proactive approach to managing risk
o improving project 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 to APRA.
1 This includes the previous nine milestones submitted to Promontory for assessment as at 31 August 2018.