The Australian Prudential Regulation Authority (APRA) has announced that it will start a consultation process on targeted amendments to CPS 230 Operational Risk Management by the end of 2025.
APRA says that this follows industry feedback highlighting challenges when applying the new standard’s contractual obligations to arrangements with non-traditional service providers (NTSPs). NTSPs are providers that are typically market-mandated, such as stock exchanges, payment schemes or clearing and settlement facilities. Arrangements with these providers often lack formal contracts or rely on standardised, non-negotiable terms.
The proposed amendments will clarify APRA’s expectations for arrangements with NTSPs, particularly around contract uplift and service level monitoring. The changes aim to streamline processes for regulated entities and reduce regulatory burden, while ensuring a practical prudential framework that enhances resilience across the financial system.
All other risk obligations under CPS 230 will remain unchanged.
APRA says that it will run an accelerated policy process, including a one-month consultation period, to finalise the targeted changes before 1 July 2026.
