Case Study

Strengthening a Critical Technology Contract for CPS 230 Compliance

Overview

A mutual bank engaged Mutual Marketplace (MM) to urgently transition its existing document management services agreement to a stronger, APRA-aligned contract framework ahead of renewal.

The existing supplier contract was due to expire within eight weeks. The objective was to ensure CPS 230 compliance while materially improving commercial protections, service performance, and operational resilience.

The Challenge

  • Contract renewal deadline within two months
  • Agreement written on supplier paper
  • Limited performance consequences
  • Lower liability caps
  • Minimal operational risk and business continuity obligations
  • No termination for convenience rights

The bank required a modernised agreement aligned to CPS 230 and contemporary regulatory expectations.

The MM Solution

MM transitioned the arrangement onto MM contractual terms, leveraging a pre-negotiated, APRA-uplifted framework designed for regulated financial institutions.

Key enhancements included:

1. Stronger Service Levels & Accountability

Improvement:

  • Defined service level metrics
  • Monthly reporting
  • Rectification obligations
  • Financial service credits for underperformance

The prior agreement included limited KPIs and restricted service credit mechanisms.

2. Improved Liability & Risk Protection

Improvement:

  • Supplier liability up to 24x average monthly fees
  • Carved-out higher caps for data, privacy, and security breaches (up to ~$6.3m)
  • Broader indemnity protections
  • One-way termination for convenience in favour of the bank

The previous contract capped liability at 12x annual fees (~$350k annually) and did not include these enhanced protections.

3. Enhanced Risk & Operational Resilience

Improvement:

  • Quarterly risk register updates
  • Defined risk tolerance thresholds
  • Mandatory operational risk incident notification
  • Annual business continuity testing

The prior agreement contained only high-level disaster recovery provisions and no structured risk governance framework.

 

Outcome

The revised agreement delivered:

  • CPS 230 alignment
  • Stronger commercial and risk protections
  • Greater operational resilience
  • Improved performance accountability
  • Enhanced disengagement rights

The customer’s executive feedback was that the new agreement represented “a materially stronger position than previously held.”

CSR at Mutual Marketplace

At Mutual Marketplace, we prioritize corporate social responsibility. As a top shared services company, we extend member-based institution support.

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