The Australian Prudential Regulation Authority (APRA) has finalised a new prudential standard to ensure banks, insurers and superannuation trustees better manage operational risks and respond to business disruptions.
Prudential Standard CPS 230 Operational Risk Management (CPS 230) will commence on 1 July 2025 and provides a foundation for APRA-regulated entities to:
- strengthen operational risk management through new requirements to address identified weaknesses in existing controls;
- improve business continuity planning to ensure they are positioned to respond to severe disruptions; and
- enhance third-party risk management by ensuring risks from material service providers are appropriately managed.
The regulator finalised the standard following industry consultation that commenced in July 2022.