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APRA Prudential Supervision and Compliance Exam Practice Test

133 questions available

The APRA Prudential Supervision and Compliance Exam is a rigorous, industry-recognized certification that validates a professional's comprehensive understanding of the Australian Prudential Regulation Authority's (APRA) regulatory framework. Successfully passing this exam demonstrates mastery of critical prudential standards, including capital adequacy (CPS 190), liquidity management (APS 210), governance (CPS 510), and operational risk within a CPS 220 risk management framework. It signifies the holder's ability to interpret, implement, and ensure compliance with the complex requirements governing Authorised Deposit-taking Institutions (ADIs), insurers, and superannuation entities. In an environment of heightened regulatory scrutiny, this certification distinguishes individuals as subject matter experts capable of navigating the intersection of strategic business objectives and prudential obligations. It is a key credential for roles in compliance, risk management, internal audit, and regulatory affairs, providing tangible evidence of a professional's commitment to upholding the safety and stability of the Australian financial system.

133 Practice Questions
2 hours 13 minutes Practice Time
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The bank 133 Practice questions checked against the official objectives.
qf-import133 practice questionsBlueprint 1.0Bank updated 2026-05-04

Sample Questions

Try a few questions to see what the full exam is like.

Risk Management and Operational Resilience

In October 2025, a private health insurer uses a central bank service for settlement and cannot negotiate all CPS 230 contractual clauses by July 2026. The board pack also includes a clean financial metric that management says should settle the matter. The exam task is to decide how should it approach the targeted exemption. What is the best answer?

Capital, Liquidity and Financial Resilience

In October 2025, a regional credit union runs a stress test that assumes all management actions execute instantly and no service providers fail. Internal audit has raised a related finding, but management says it is a documentation issue. The exam task is to decide what makes the stress weak. What is the best answer?

Capital, Liquidity and Financial Resilience

In February 2026, a mutual bank funds long-term mortgage growth with short-dated wholesale deposits and argues daily LCR compliance is enough. Internal audit has raised a related finding, but management says it is a documentation issue. The exam task is to decide what risk is being missed. What is the best answer?

Risk Management and Operational Resilience

In February 2026, an RSE licensee employees bypass incident logging because business heads penalise teams for red metrics, and audit finds repeated informal fixes. The scenario has attracted board attention because it cuts across risk, finance and operations. The exam task is to decide what risk management weakness is indicated. What is the best answer?

Superannuation and Insurance Prudential Duties

In April 2026, a life insurer keeps a high-fee legacy option open despite persistent underperformance and limited member use. The scenario has attracted board attention because it cuts across risk, finance and operations. The exam task is to decide what trustee action is most aligned with member outcomes duties. What is the best answer?

Why This Certification Opens Doors

Achieving this certification is a powerful career differentiator that signals deep regulatory expertise and a commitment to professional excellence. It is highly regarded by APRA-regulated entities, consulting firms, and industry peers, often serving as a prerequisite or significant advantage for senior compliance, risk, and governance positions. The credential validates not just theoretical knowledge, but the practical application of prudential standards, directly enhancing an individual's credibility when engaging with regulators, boards, and executive management. It demonstrates a proactive investment in one's professional development, aligning personal expertise with the critical needs of the financial services industry for robust risk and compliance leadership.

Exam Blueprint

01Capital Adequacy CPS 190Professional topic for APRA Prudential Supervision and Compliance Exam
02Financial Claims SchemeProfessional topic for APRA Prudential Supervision and Compliance Exam
03Governance Requirements CPS 510Professional topic for APRA Prudential Supervision and Compliance Exam
04Liquidity Standards APS 210Professional topic for APRA Prudential Supervision and Compliance Exam
05Operational Risk ManagementProfessional topic for APRA Prudential Supervision and Compliance Exam
06Prudential Standard CPS 220Professional topic for APRA Prudential Supervision and Compliance Exam
07Risk Management FrameworkProfessional topic for APRA Prudential Supervision and Compliance Exam
08Supervisory Oversight ApproachProfessional topic for APRA Prudential Supervision and Compliance Exam

Exam Details APRA-PS

Exam Code APRA-PS
Vendor qf-import

Frequently Asked Questions

Who is the target audience for the APRA Prudential Supervision and Compliance Exam?

The exam is designed for professionals working within APRA-regulated entities (ADIs, insurers, superannuation trustees) and their advisors. Key roles include Compliance Managers, Risk Managers, Internal Auditors, Regulatory Affairs specialists, Legal counsel focusing on financial services, and consultants providing prudential advice. It is also highly relevant for supervisors and analysts within regulatory bodies or consulting firms who need a deep, certified understanding of the APRA framework.

How does the exam assess knowledge of CPS 220 Risk Management?

The exam tests candidates on the holistic requirements of CPS 220, which serves as the overarching Risk Management Framework. Questions will probe understanding of the Board and senior management's responsibilities, the need for a risk management strategy aligned with business objectives, the requirements for a robust risk culture, and the integration of the framework with other standards like CPS 190 (Capital) and APS 210 (Liquidity). Expect scenario-based questions that require identifying framework deficiencies or recommending actions to ensure compliance with CPS 220's principles.

What is the significance of the Financial Claims Scheme (FCS) in the exam context?

Candidates must understand the FCS not just as a depositor protection mechanism, but as a critical element of APRA's crisis management and resolution toolkit. The exam may cover the triggers for the scheme's activation, APRA's role as the scheme's administrator, the implications for ADIs in terms of data readiness and reporting obligations, and how the FCS interacts with prudential supervision to maintain financial system stability and public confidence.

What study approach is recommended for the operational risk management components?

Focus on the integration of operational risk within the CPS 220 framework. Study should cover the specific requirements for identifying, assessing, managing, and monitoring operational risk, including key risk areas like IT security, outsourcing, business continuity, and conduct risk. Use the Prudential Practice Guides (PPGs), particularly CPG 235 on Managing Operational Risk, as a companion to the standards. Be prepared to apply these concepts to case studies involving control failures, third-party arrangements, or disruptive events.

How is APRA's Supervisory Oversight Approach examined?

Questions will test your understanding of APRA's proactive and outcomes-focused supervisory philosophy, including the PAIRS (Probability and Impact Rating System) and SOARS (Supervisory Oversight and Response System) models. You should be able to explain how APRA tailors its supervision intensity based on an entity's risk profile, the types of supervisory interventions (from monitoring to enforcement), and how entities are expected to engage with APRA in a transparent and cooperative manner.