The Australian Prudential Regulatory Authority (APRA) recently released the final version of the new Prudential Standard, CPS 230 Operational Risk Management (CPS 230), along with a draft Prudential Practice Guide (CPG 230). The proposed prudential guide is open to consultation until 13 October 2023.
The final version of CPS 230 takes into consideration practical challenges raised by the industry and has been revised to provide added clarity and flexibility. The Standard will be supported by CPG 230, which sets out APRA’s perspectives on how regulated entities can plan and implement the requirements of CPS 230. For some entities, aspects of the proposed guidance will validate assumptions made to date. For others, it may result in adjustments being needed to their compliance approach. The consultation process is an opportune time for entities to consider the impact of the proposed guidance given the context of their organisation and provide feedback.
In the attached report, we share our perspectives on the key changes and implications of the final Standard, including, but not limited to, the revised timeframe for implementation and minimum Critical Operations and Material Service Providers. Separately, we also share our initial perspectives on the draft CPG 230 and key considerations as entities reflect how the guidance will be incorporated in their compliance approach.