Post by Australian Prudential Regulation Authority

At the AFIA Risk Summit today in Melbourne, APRA Member Therese McCarthy Hockey urged financial institutions to more urgently respond to the threats posed by frontier AI and encryption-breaking quantum computers. In her remarks, Therese highlighted: 🔹 Frontier AI represents a step‑change in cyber risk, accelerating the scale, speed and complexity of threats facing financial institutions. 🔹 As we race to identify and patch vulnerabilities before they can be exploited by bad actors, nothing will achieve this faster than AI – whether frontier models or the advanced models already in circulation. 🔹 Resilience is collective. In an interconnected system, information sharing and coordinated action across industry, regulators and partners will be critical to managing this evolving threat environment. 🔹 Boards and senior management must ensure governance and risk management keep pace, understand third‑party and operational dependencies, and act now to strengthen core controls rather than waiting for access to frontier models. As the financial system navigates increasing complexity and uncertainty, APRA continues to focus on ensuring that entities are well positioned to manage both established and emerging risks. 📄 Read the full speech on APRA’s website: https://lnkd.in/gheyDeZA #RiskManagement #OperationalResilience #AI #CyberSecurity #FinancialStability #Regulation