CPS 230 – Be Ready for 2024

In July 2022, APRA released for consultation a new prudential standard, CPS 230 - Operational Risk Management, designed to strengthen the management of operational risk in the banking, insurance and superannuation industries with written submissions requested by 21 October 2022. CPS 230 is proposed to apply to all APRA-regulated entities in the banking, insurance, and superannuation industries from 1 January 2024.

The new cross-industry standard consolidates five existing Prudential Standards on outsourcing (CPS/SPS/HPS 231) and business continuity management (CPS/SPS 232) across the banking, insurance, and superannuation industries. CPS 230 will set out minimum standards for managing operational risk, including updated requirements for business continuity and service provider management. The proposed new standard for operational risk management, which will replace and supersede a number of existing standards in this area, encompasses operational risk controls and monitoring, business continuity planning and the management of third-party service providers. The aim of the standard…