CPS 230 Compliance Update

Another insightful speech from APRA today, highlighting their focus on financial and operational resilience.

With respect to CPS230, they are seeing positive signs for compliance in the following circumstances:

1️⃣ Entities that have shifted their mindset to focus on critical operations are best able to understand the purpose of CPS 230. The new standard is about understanding and protecting the areas that have the most impact should they fail.
💡 For smaller entities, how have you gone about identifying your VIPs (very important processes)? Setting the bounds of these processes/operations as soon as possible creates a clear 'playing field' for CPS230 that everyone can understand.

2️⃣ Entities that are taking a logical sequence to understanding critical operations then connecting to material service providers, before progressing to defining tolerances, can manage the change in an orderly way.
💡 For smaller entities, can you tackle this by getting all the right people in the room as a matter of priority? Perhaps you do not have the process maps written down, but even if you do - are they set out in a way that help you get to the point of CPS230?

3️⃣ Entities that are focusing on the capability needed to deliver the regulatory change for CPS 230 and sustain it are also thinking about oversight of service providers under the new standard.
💡 For smaller entities, people and system capability is a critical success factor for sustaining compliance. Have you started to think about how you are going to gather and manage this new level of information?

At August Advisory, we continue to work with our clients on designing the way forward for CPS230 that best fits their businesses.

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