The Australian Prudential Regulation Authority (APRA) has announced that its new cross-industry operational risk management standard will now be introduced later than originally planned.
Prudential Standard CPS 230 Operational Risk Management was originally scheduled to become effective on 1st January 2024. In response to feedback received during the consultation period, APRA intends to change this to 1st July 2025.
APRA will also provide transitional arrangements for pre-existing contractual arrangements with service providers, with the requirements in the standard applying from the earlier of the next contract renewal date or 1st July 2026.
CPS 230 is designed to strengthen the management of operational risk in the banking, insurance and superannuation industries. APRA expects to release a final version of CPS 230, together with draft supporting guidance, in mid-2023.