APRA’s Proposed Prudential Standard CPS 230: Operational Risk Management

In October 2022, we responded to the Australian Prudential Regulation Authority’s (APRA’s) consultation for a new cross-industry Prudential Standard CPS 230 Operational Risk Management, setting out minimum standards for managing operational risk, including updated requirements for business continuity and service provider management.

In our submission, we agreed with the draft CPS 230’s principles-based approach to operational risk management, which was outcomes-focused and flexible. We suggested it be made clear in the proposed standard that it does not have any impact on industry’s work with respect to payments modernisation and that, in line with APRA’s goal of proportionality, it is mandatory for Significant Financial Institutions (SFIs) only.

AusPayNet’s submission is available below.