Implement CPS 230 Prudential Standard
Business case
APRA regulated entities will be required to implement the new prudential standard CPS 230 Operational Risk Management by 1 July 2025, although the implementation timetable extends through to July 2026 for existing contracts with service providers.
APRA will expect to see material progress towards implementation of CPS 230 ahead of the compliance date. APRA’s reflection on implementation of CPS 234 suggests an increasing impatience for lack of action and investment.
What do you need to know?
Enhanced regulatory minimum standards in areas such as governance, risk management, business continuity, and management of service providers.
Strengthened regulatory powers to intervene in assessments and to enforce improvement in management of risk where APRA is of the view that an entity’s risk management has material weaknesses.
APRA expects that regulated entities will:
Establish board governance with oversight of a formal change management plan.
Secure adequate financial capacity, skills and expertise.
Undertake a formal gap analysis against the CPS 230 Prudential Standard, and we also recommend against the (currently draft) Prudential Practice Guide CPG 230 Operational Risk Management.
Develop a transition plan for demonstrating compliance with the requirements of the Standard.
Monitor progress against the transition and change management plan.
How we can help
Provide subject matter expertise for the duration of your project
Facilitate / co-develop the CPS 230 gap analysis and transition plan.
Provide an independent review of governance arrangements, gap analysis, transition plan, solution design, and sustainable embedding of transition plan.
Work with us
Proven track record in delivery of and or assurance over embedding of critical regulatory projects
Deep experience at ‘Executive Manager’ and ‘Head of Operational Risk’ level in a regulated entity.
Committed to transferring knowledge and capability to your team.
APRA regulatory experience.
