Introduction to CPS 230

The much-anticipated regulatory guide for CPS 230 was released last week, providing crucial insights into the practical application of the new standard. In this document, we outline key requirements of CPS 230 and demonstrate how Mutual Marketplace can assist your business in achieving compliance and enhancing operational risk management.

Key CPS 230 Requirements

Proportionality and Scaled Maturity

Ø  Applicability: CPS 230 applies to all APRA-regulated entities. Expectations are scaled according to the size and complexity of the entity.

Ø  Maturity Roadmap: Smaller financial institutions can benefit from a phased approach to maturity, allowing for practical and manageable progress over time.

Responsibilities, Risk Profile and Business Continuity

Ø  Operational Risk Management: Entities must effectively manage operational risks, ensuring that critical operations are maintained within tolerance levels during disruptions.

Ø  Risk Management Framework: Your framework should include clear operational risk requirements and clearly defined responsibilities, including escalation procedures.

Ø  APRA Notification Requirements: Understand and document notification requirements, including those for entering into significant service arrangements and reporting operational incidents.

Ø  Risk Profile Review: Regularly review and update your risk profile using scenario analysis to ensure it reflects current risks.

Ø  Business Continuity: Identify your critical operations and establish tolerance levels to ensure business continuity in the face of disruptions.

Service Provider Management and Agreement Uplift

Ø  Service Provider Policy: Develop a comprehensive service provider management policy that includes:

  • Roles and responsibilities
  • Due diligence processes
  • Materiality assessments
  • Clear onboarding and exit procedures.
  • Issues management and escalation
  • Vetting of key personnel
  • Monitoring processes, including SLAs and risk assessments

Ø  Material Agreements: Ensure that agreements for significant service arrangements are maintained and periodically reviewed.

The Mutual Marketplace Offering

Mutual Marketplace is equipped and ready to assist your organisation in meeting the requirements of CPS 230. We offer a range of services designed to support your compliance efforts and operational risk management:

  • Contract Management: We can manage the entire contract process, from drafting and negotiating agreements to ongoing management and review.  We also offer bespoke contract assistance through our Independent Legal Practice.
  • Service Provider Management: Our team can help you develop and implement a robust service provider management policy, ensuring all aspects of CPS 230 compliance are covered.
  • Policy Uplift: We can assist in enhancing your risk management framework and policies to meet the new standards set by CPS 230.
  • Tailored Support: Whether you need comprehensive management or support for specific areas, Mutual Marketplace offers flexible solutions tailored to your needs.

Next Steps

Explore the options available to your organisation with our detailed mind map below, which outlines the various services and support mechanisms for CPS 230 compliance, provided by Mutual Marketplace. Contact us today to discuss how we can help your business achieve compliance with CPS 230 and enhance your operational risk management practices.

CSR at Mutual Marketplace

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