The Australian Prudential Regulation Authority (APRA) will broaden its risk-based supervision to cover threats that could affect financial system stability.

The priority, one of six outlined in APRA’s four-year corporate plan, comprises initiatives including modernising the supervision framework, improving its ability to identify and respond to emerging risks, and optimising internal and external skills.

The other priorities are: improving data-enabled decision-making; building resolution capacity; strengthening external engagement and collaboration; enhancing leadership and culture; and lifting organisational capability.

“Risks to APRA, the institutions and industries it regulates or the stability of the financial system can emerge quickly, and APRA needs to be proactive and positioned to respond,” the regulator says.

Budgeted expenses for the year to next June are about $145.55 million, with the figure expected to fall to about $144.04 million in 2019/20.

APRA’s estimated expense last financial year was $142.7 million.