APRA defers operational risk standard start to mid 2025
APRA defers operational risk standard start to mid 2025
17 April 2023
The Australian Prudential Regulation Authority (APRA) has delayed the start date for a new operational risk standard to the middle of 2025 following industry requests for more time.
“APRA received a range of feedback from regulated entities and other stakeholders during consultation, including a request for more time for preparation before the requirements come into effect,” the regulator said last week.
CPS 230 will set out minimum standards for managing operational risk, including updated requirements for business continuity and service provider management across banking, insurance and superannuation. Previously it was expected to come into force from next January.
APRA also says it intends to provide transitional arrangements for pre-existing contractual arrangements with service providers, with the standard to apply from the earlier of the next contract renewal date or July 1 2026.
A draft version of CPS 230, which will replace five existing standards, was released as part of a consultation package last year.
“In strengthening the ability of APRA-regulated entities to identify, manage and respond to operational risk events, APRA is seeking to enhance operational and financial resilience, as well as financial stability,” former APRA Chairman Wayne Byres said last year.
“The proposed CPS 230 will also help ensure APRA-regulated entities meet the challenges posed by ongoing innovation and technological change in the financial services industry.”
APRA plans to release a final version, together with draft supporting guidance, in the middle of this year.
