Governance, Risk & Compliance: GRC
Four Essentials for Mastering APRA CPS 230 Compliance
What is APRA CPS 230? The Australian Prudential Regulation Authority (APRA) introduced CPS 230, which is a standard designed to enhance resilience and risk management for organizations relying on third-party service providers. In short, APRA is about building out proactive measures that ensure continuity—even in especially challenging business circumstances.
CPS 230 is considered a “game changer” for the industry. CPS 230, reports InsuranceBusiness, doesn’t just stop at direct compliance for large insurers. It also indirectly impacts smaller agencies and partners who now must meet the same high standards, too. This adds a new layer of complexity. But it also provides a unique opportunity for those businesses willing to evolve their practices.
What does APRA CPS 230 require in practice? And how can organizations prepare effectively? Below are four key practices that form the foundation of a strong CPS 230 compliance strategy. By following them, you can better ensure resilience remains a core part of your business.
Identify and Register Material Service Providers
CPS 230 requires firms to identify and maintain a register of material service providers. This is especially relevant for those colleagues and teams supporting critical operations. Essentially, this means understanding exactly who supports your business. And knowing where potential issues could arise. This step creates a safety net that lets organizations quickly adapt if any disruptions occur among key providers. This work is important because it ultimately prevents small setbacks from snowballing into larger problems.
Perform Ongoing Risk Assessments
CPS 230 mandates regular risk assessments of critical vendors. Organizations should adopt a data-driven approach by focusing on key risk indicators and performing due diligence on security controls. It’s critical to track compliance in real-time and gain insights on potential risks as they arise. This proactive approach keeps organizations one step ahead. The result? Better control over possible threats.
Strengthen Incident Management and Continuity Planning
Under CPS 230, incident management and continuity plans must be robust. Using a GRC platform to centralize business continuity activities ensures organizations are ready for any interruption that comes their way. And not just ready on paper, but in real, practical terms. By monitoring vendor performance against Service Level Agreements (SLAs), firms can spot red flags early. And act quickly before small risks turn into costly crises.
Centralize and Automate Compliance Processes
APRA’s emphasis on maintaining a living third-party register highlights the need for up-to-date, accurate data. With an integrated GRC platform, organizations can keep compliance processes moving seamlessly across departments, while automating time-consuming tasks like policy attestations and updates. This continuous loop of oversight and adjustment creates a powerful feedback system that ensures everyone stays aligned, compliance is tracked in real-time, and risks are minimized.
Final Thoughts
Navigating CPS 230 compliance goes beyond checking yet another regulatory box. It’s about fostering resilience so the ability to bounce back in tough times becomes part of your business’s DNA. By implementing a centralized GRC solution, organizations meet compliance standards, yes. But they also build a framework that withstands disruptions, ensures seamless service, and protects both the organization and its stakeholders in an unpredictable world.
For more detailed information, check out SAI360’s webinar, Best Practices for APRA CPS 230 Compliance.
Let’s Start a Conversation
Schedule a virtual coffee with a team member:
Source: https://www.insurancebusinessmag.com/au/news/legal-insights/is-cps-230-an-industry-game-changer-504840.aspx
