pc
nid 92307
Apr 30, 2026
kgurnani@vixio.com
Australia
Australian Prudential Regulatory Authority
financial services
89% of draft length
draft in Generated
Generated
1627 charsAustralian Prudential Regulatory Authority Finalises Amendments to Operational Risk Management Standard
On Thursday, April 30, 2026, the Australian Prudential Regulatory Authority (APRA) finalised targeted amendments to prudential standard CPS 230 Operational Risk Management, prudential practice guide CPG 230, and the corresponding Material Service Provider Register template.
The amendments introduce limited exemptions from specific contractual requirements in CPS 230 for material arrangements with certain categories of non-traditional service providers (NTSPs), including central banks and clearing and settlement facilities. These exemptions apply where contractual compliance is not practicable. Developed in response to industry feedback, the changes aim to provide targeted, administratively efficient solutions for regulated entities that maintain material arrangements with NTSPs, while preserving the core objectives of operational risk management. The amendments apply to all institutions supervised by APRA, including banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and superannuation industry members.
The amendments will come into effect on July 1, 2026. Regulated entities should review the full letter to industry and detailed changes available on the APRA website to understand the scope of the exemptions and ensure compliance with the updated requirements by the effective date. For further information, regulated entities can contact APRA on 1300 558 849.
REFERENCES:
Australian Prudential Regulatory Authority. (2026, April 30). APRA finalises targeted amendments to CPS 230 Operational Risk Management. https://www.apra.gov.au/
Agent draft
Not run yet.
Published
1446 charsAustralian Prudential Regulatory Authority Finalises Amendments to Operational Risk Management Standard
On April 30, 2026, the Australian Prudential Regulatory Authority (APRA) finalised targeted amendments to prudential standard CPS 230 Operational Risk Management, prudential practice guide CPG 230, and the corresponding Material Service Provider Register template.
The amendments introduce flexibility to third-party risk management, enabling regulated entities to identify, manage, and maintain critical operations through disruption, including risks arising from service providers.
The key amendment is the inclusion of limited exemptions for non-traditional service providers (NTSPs), including central banks and financial market infrastructure (e.g. payment systems, clearing houses), where entities have little or no ability to negotiate contractual terms. Firms are still required required to:
Identify and assess risks arising from these arrangements
Implement appropriate controls (even if non-contractual)
Monitor and manage ongoing exposure
APRA also reinforces that CPS 230 is a principles-based, proportionate framework, meaning expectations can vary depending on the nature of the service provider and the criticality of the service. For NTSPs or exempt arrangements this means that due diligence and oversight may be less formal or indirect. However, firms must still demonstrate they have a clear understanding of the risk and appropriate governance and monitoring in place.
These amendments take into effect on 1 July 2026.