The Australian Prudential Regulation Authority (APRA) has issued prudential standards on business continuity management for authorised deposit-taking institutions (ADIs) and general insurers.

The new standards aim to ensure the two groups take a “whole of business” approach to business continuity management appropriate to the nature and scale of their individual operations, according to the regulator.

The new standards mean businesses must address continuity risk controls when creating risk management frameworks.

The new standards are effective immediately, but ADIs and general insurers have a 12-month transitional period in which to identify areas of non-compliance.

APRA expects to release a similar standard on business continuity management for life companies early next year.